HoR mandates C’ttee to investigate revenue leakage

By Tom Okpe

The House of Representatives has mandated its Committee on Public Accounts, to investigate revenue leakages through the remit platform.

The Green Chamber also expressed displeasure over the non-compliance by revenue generating agencies of government on standard operating procedures and other allied service level agreements, signed among deposit money banks, office of the Accountant General of the Federation, (AGF) Systemspec, Nigeria Interbank Settlement System, (NIBSS) and the Central Bank of Nigeria, (CBN) for further legislative action.

In a motion titled: ‘Call to Investigate Revenue Leakages and Non–remittance of Revenues Generated through the Remita Platform,’ sponsored by Rep Jeremiah Umaru, (APC, Nassarawa) and Rep Jafaru Gambo, (APC, Bauchi), noted that Nigeria is not experiencing an expenditure issue but rather, a revenue issue.

He also noted that; “Remita is a software, cum financial service platform owned by System-Specs which is a Private Company in charge of managing Government Revenues, which has served as gateway for the Treasury Single Account, (TSA) of the Federal government since 2012, though fully adopted in 2015 and used in the collection of Government Revenues over the years.

“Over 8.7 trillion Naira had been processed through the platform before the deployment of the software, the Nigerian Government had over 15,000 Bank Accounts, operated by Ministries, Departments and Agencies, (MDAs), the proliferation of accounts has moved from deposit money banks to CBN, allowing MDAs to create multiple sub-accounts, thereby, negating the TSA Policy of the Federal Government.”

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He further explained that the TSA system has created a cashless economy, transparency and effective tracking of cash assets with attendant accountability.

“It has not indeed fully blocked leakages and abuses by the proliferation of CBN Sub-Accounts.”

The lawmaker also noted that 1% of funds collected, is charged as commission for making use of the platform and shared among SystemSpecs, owner, Deposit Money Banks, (processor) and CBN, (License issuer) in the ratio of 50:40:10 respectively. This is alarming and unacceptable.

Consequently, he expressed concern that; “Despite benefits and reasons for on-boarding the Remita Platform, the rate of revenue leakages is worrisome apart from non-compliance substantively, with Standard Operating Procedures and other allied Service Level Agreements signed by parties.

“Disturbed that if this scenario continues unabated, Government will continue to experience a revenue shortfall and this will prevent it from meeting the rising demand for good Governance and infrastructural development from citizens.

“Concerned that a larger percentage of deposit money banks has formed the habit of delay in, on-ward remittance or sweeping of revenues collected to the Central Bank of Nigeria.”