The Auditor General of the Federation, Anthony Ayinne, has revealed that out of the N6.4trillion generated by agencies in 2017, about N1.5trillion was illegally deducted and not remitted to the federation account.
The revelation was contained in the Office of the Auditor General for the Federation 2017 audit report which was released on Wednesday.
According to Ayine, the N1.5trillion was deducted by the agencies in violation of the Constitution of the Federal Republic of Nigeria.
The report revealed that the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service (FIRS) and the Department for Petroleum Resources (DPR) made the illegal deductions of N1.3trillion, 21billion and N26.77billion respectively before remitting the remaining balance to the federation account.
The Auditor-General further recommended to the Accountant General of the Federation, Ahmed Idris, that all deductions made by these agencies be stopped and the agencies properly sanctioned.
“The total revenue inflows to the federation account from the various collecting agencies as per the Central Bank of Nigeria component statements for the period under audit amounted to 6,422,596,646,680.26.
“Department of Petroleum Resources collected the sum of 733,054,301,173.04 but paid a net figure of 706,283,397,141.80 to the federation account after deducting excess proceeds on royalty of 26,770,904,031.24.
“The total amount of 2,653,810,173,226.72 was generated by the FIRS for the period under audit; however, the actual amount paid into the federation account was 2,457,272,701,077.09 after deducting 196,537,472,149.63 being the total excess proceeds on royalty.
“These collecting agencies made deductions from the revenue collected by them. This act contravenes the provisions of Section 162 (1) of the 1999 Constitution which stipulate that ‘The federation shall maintain a special account to be called the federation account’ into which shall be paid all revenues collected by the government of the federation.’
“This has been a regular subject of my reports which has been ignored over the years,” the report read.
Jonathan Dennis is an Editor at Naija Buzz News Network. He oversees the production and publication of stories on NaijaBuzz.News and on Naija Buzz News TV. The former banker left his banking job to join Naija Buzz News in 2019. He was briefly the head of the “Wetin Dey Happen” news team. Jonathan is a proud ‘Akwa-Ibomite’ from Akwa Ibom State, South-South Nigeria.