The federal government Thursday ordered the closure of
bank accounts of errant government agencies that have failed to remit their
revenues to the Consolidated Revenue Fund (CRF) of the federation as stipulated
by section 80 of the 1999 Constitution, as amended.
It has therefore directed the Accountant General of the
Federation, Mr. Jonah Ogunniyi Otunla, to close the bank accounts of the
affected agencies by Monday.
Also Thursday, the Forum of Commissioners of Finance of
Nigeria (FCFN), which has representatives from the 36 states of the federation,
stormed out of the monthly meeting of the Federation Accounts Allocation
Committee (FAAC), which was conveyed to share the federally collected revenue
for May over allegations of unpaid arrears amounting to about N160 billion.
A statement Thursday by the Coordinating Minister for the
Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, put the outstanding
revenue not in the CRF net at N58 billion, adding that the closure order was
necessary to promote accountability in the system.
The statement was however silent on the errant agencies.
Okonjo-Iweala condemned the fact that
the agencies had been conspiring with some banks not to remit the stipulated
funds into the CRF, which they were obliged by law to do.
The Fiscal Responsibility Act, 2007 (FRA) states that each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.
The Fiscal Responsibility Act, 2007 (FRA) states that each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.
The Act also requires that the balance of the operating
surplus shall be paid into the CRF not later than one month following the
statutory deadline for publishing each corporation’s accounts.
The minister said: “This unwholesome practice has
persisted despite the efforts of the Office of the Accountant General of the
Federation (OAGF) to encourage the agencies and the affected banks to do the
right thing.
“Rather than comply, the agencies and banks, through their
lawyers, have engaged in all manner of legal subterfuges to ensure that monies
which are due to the federal government are not remitted.”
The minister pointed out that the objective of the act,
which she stressed was against the national interest, was clearly to keep
government monies indefinitely in accounts earning interest for individuals at
the expense of the federal government and Nigerians.
“This is totally unacceptable and the Federal Ministry of
Finance is determined that this practice must end forthwith. Starting
Monday, June 17, 2013, the OAGF, in exercise of its powers under the extant
laws and rules, will close the accounts of agencies involved in this practice
in all banks.
“This process of systematic closure
will continue until all monies that should be in the CRF are retrieved,” she
added.
When contacted on the development, Otunla, who declined to list the affected agencies, said virtually all the banks were involved.
When contacted on the development, Otunla, who declined to list the affected agencies, said virtually all the banks were involved.
Speaking in a telephone interview, the AGF said: “I
think we have been a bit lenient with agencies in terms of remitting their
revenues to us. The FRA 2007 states that they should remit 80 per cent of their
operating expenses to the CRF, but they have been frustrating us by always
escalating their expenditure and reducing their operating expenses.
“So we wrote the banks where they kept these monies and we
found out that most of these monies were kept in fixed deposits. So that is not
acceptable and by Monday, we are going to close down those that fail to
comply.”
According to him, such unwholesome practices would
frustrate the Single Treasury Account that was adopted to consolidate the
federal government revenues.
A report of an investigation conducted by the House of
Representatives Committee on Finance last quarter had earlier shown that some
agencies failed to remit their revenues to the CRF.
The lawmakers had last November directed its Committee on
Finance to investigate independent revenue generation and remittances by
federal government agencies.
The House has indicted about 60 government agencies,
including the Nigerian National Petroleum Corporation (NNPC), Central Bank of
Nigeria (CBN) and Nigeria Ports Authority (NPA) over non-remittances of
revenues.
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