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Tag: remit

JAMB to remit less revenue to Federation Account

Joint Admissions and Matriculation Board (JAMB) Registrar Prof. Ishaq Oloyede yesterday said the examination body will this year remit less than the N7.8billion it remitted to Federal Government coffers in 2017.

Oloyede spoke during 2018 budget defence session with the Senate Committee on Tertiary Education and TETFUND.

He noted although JAMB projected N14.691billion as its Internally Generated Revenue ( IGR), for 2018 fiscal year, N7.744billion out of it would be used for overhead cost items while N2.683billion is earmarked for capital project .

The JAMB boss said the examination body was given zero allocations for overheads and capital expenditure components in 2017 budget.

He said in 2018 budget proposal, JAMB was also given zero allocation for overhead and capital expenditure, a situation that made it to plan funding for the two components from its projected IGR.

He said: “If we remove N7.744bn estimated for overhead cost and N2.683bn earmarked for capital project from the projected N14.691bn IGR, the balance surplus would be N4.262bn to be remitted into the Federation Account as against N7.8bn remitted last year.

“This has to be so because of critical expenditure to be carried out on overhead cost in terms of maintenance and upgrading of our facilities and information technologies and in particular , the highly needed capital project of procurement of new headquarters that would be on the national fiber optics for easy connection.”

Oloyede noted that for the JAMB to install needed connections in its temporary site in Bwari town, it would cost it N300billion which necessitated it’s plan of either moving to the central area in Abuja metropolis or along the Airport road within the axis of University of Abuja .

The Chairman of the committee, Senator Jibrin Barau (Kano North) and some other members, commended the JAMB registrar for a job well done in terms of revenue remittance.

A member of the committee, Senator John Enoh (Cross River Central), took the JAMB boss up over his plan to remit less revenue to the Federal Government .

Enoh noted that what the registrar did last year was in line with the policy that such bodies should remit 25 per cent of revenues generated into the Federation Account.

“To me, the JAMB registrar is being over commended or praised on what is expected of him legally and besides, he needs to explain to us properly why such revenue remittance would drop this year because the capital project he is planning for is not absolutely within his powers, ” he said.

The committee chairman over ruled him, saying that the JAMB registrar deserved commendation to encourage him to do more for the examination body .

Barau said: “Sentiments apart, what is good is good. This man has performed wonders where many had failed and nobody expects anybody here to say a different thing. “

January 9, 2018
NNPC fails to remit N1.7tr into Federation Account
The Federation Account Allocation Committee ( FAAC ) meeting was called off last Thursday over the non-remittance of about N1.78 trillion into the government’s coffers by the Nigerian National Petroleum Corporation ( NNPC ), The Nation learnt yesterday.

About N1.32trillion of the outstanding was unpaid by the NNPC during former President Goodluck Jonathan’s administration.

The whereabouts of the cash remains unknown.

Also, from January 2016 to September 2017, NNPC has about N460. 649bilion yet to be remitted into the Federation Account.

The states have queried why such huge cash from crude oil sales revenue will be tagged “outstanding” by NNPC since 2010.

They also demanded an update from the NNPC on about $172,913,617.30million outstanding payments from the NLNG Feedstock sales, Chevron Cheetah Project, Royalty Oil Sales Value lifting by TEPNGA MCA, RDP Price Review and others.

But, the Minister of Finance, Mrs. Kemi Adeosun, who inherited the challenge of reconciliation between the states and NNPC at the FAAC, is said to be addressing the matter.

The minister, who is determined to bring the states back to the FAAC meeting, may also address the press on the stalemate.

The NNPC is insisting that FAAC owes it about N797billion, being cost of product and pipeline losses.

It has asked the FAAC to give it a three-month grace to compile the lost data from its area offices as demanded by states and to complete a forensic audit of same.

Although the three-month period will lapse by the end of November, the states are insisting that there will be no FAAC meeting until the non-remittance of the N1.78trillion is resolved.

Investigation revealed that the states had raised concerns over the NNPC’s outstanding N1.78trillion at the FAAC Post-mortem Sub-Committee meeting on October 23 but the Federal Government did not know that it would degenerate to a likely boycott of the FAAC meeting last Thursday.

According to a document, which was obtained by The Nation, the FAAC analysis for October 2017 fuelled the anger of the cash-strapped states.

The analysis, which was prepared by the FAAC Post-mortem Sub-Committee meeting, raised eight issues for the NNPC to clarify. They include the non-payment of N1.78trillion into the Federation Account.

In the document, signed by the Chairman, FAAC Post-mortem Sub-Committee, Dr. Casimir I. Anyanwu, the committee gave the highlights of NNPC’s outstanding payments into the Federation Account during Jonathan administration and under the current administration.

About N1.32trillion revenue from 2010 to 2015 is yet to be remitted by NNPC; about N460.649 has been unpaid between January 2016 and September 2017 bringing the total to N1.78trillion.

The document said: “The Gross Domestic Crude Revenues between 2010 and 2015 amounted to N5, 351,114, 508, 433.79(trillion); the PPPRA’s certified NNPC subsidy from 2010 to 2015 was N4, 026, 369, 698, 361.62(trillion) and the Net outstanding revenues due to Federation is N1,324,744, 810,072.12(trillion).

“The statement of NNPC Gross Domestic Crude Oil Sales Revenue due to Federation Account for the period January 2016 to September 2017 is as follows: Crude Volume(220, 619,908); Value of domestic crude purchase (N2,573,022, 429, 022.30 trillion); NNPC payment to the Federation Account(N2,112, 373, 341, 362.49 trillion); Gross Outstanding due to the Federation Account (N460,649,087,660.12 billion).”

The NNPC is said to be holding on to some outstanding payments because FAAC is yet to refund the N797billion it incurred as product and pipeline losses.

But this claim has been faulted by states because there is no proof from the oil giant.

All the stakeholders are said to be demanding a forensic audit of NNPC’s losses and how these led to the N797billion bill.

Another document added: “On the product loss and pipeline repairs which NNPC was claiming, the Ad-hoc Committee recommended to the Sub-Committee to visit NNPC in order to:
- Verify and ascertain approvals to incur the expenses
- Examine all contractual agreements on pipeline repairs
- Identify the Strategic Reserves locations
- Examine the intervals at which the Strategic Reserves are kept and discharged.
“That the request by NNPC to include the sum of N797billion as contained in the recommendations of the Tripartite Committee of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Federal Ministry of Finance(FMF) and NNPC should not be granted because of the clause that ‘no refund should be made to any of the parties pending the conclusion of the Forensic Audit up to 2015.’

“The Secretary FAAC Post-Mortem Committee informed members that the report had taken into consideration the observations raised by the NNPC when the report was initially presented in March 2015.

Also commenting, the AD Allocation of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) reemphasised that the product and pipeline losses could not be ascertained yet because NNPC requested to be given three months to compile the data from the various area offices.

“Also, on the issues of N797billion, which was granted to NNPC in the interim report of the Tripartite Committee, the amount had been verified.

“However, there was a clause in the interim report that stated that no party would be paid until the forensic audit was completed.

NNPC, it was learnt, plans to meet the Ministry of Finance and other FAAC members today.

A source said: “The governors are seeking more transparency in accruing revenue and remittances into the Federation Account. They have also demanded that NNPC should clear the backlog of outstanding payments into the Federation Account.

“All the states have insisted that NNPC must increase its inflow into the Federation Account. They believe what the corporation is doing could be tagged under-declaration of revenues.”
November 27, 2017
‘Fed Govt yet to remit N100b retirees’ accrued rights, others’

The Federal Government is yet to remit about N100billlion representing retirees accrued pension rights and employees’ outstanding contributions under the Contributory Pension Scheme (CPS), the Chairman, Pension Fund Operators Association of Nigeria (PenOp), Misbau Yola, has said.

Yola, who made this known while speaking to journalists in Abuja, said the last payment on accrued rights was made in February, this year.

Pension accrued rights represent the total sum of employees’ pension benefits before the commencement of the new Contributory Pension Scheme (CPS).

The PenOp chairman, however, noted that despite the fiscal challenges, the Federal Government is trying its best as it has remitted contributions up to July, this year.

He pointed out that it is important that all outstanding payments are paid to avoid erosion of confidence in the CPS.

He said: “The fiscal challenge being encountered by the Federal Government has affected its pension contribution and remittances

“The Federal government is trying, as it has paid its remittances of contributions on its employees up to July, 2015. There are few challenges with the accrued rights, but we have been told that it would be paid soon. The last payment was made in February, 2015. These are issues that affect the confidence in the system.

“We are aware that the Executive members of the National Pension Commission (PenCom) visited President Muhammadu Buhari and raised the issue of the accrued rights, and the President promised the accrued rights would be paid soon. The accrued rights and outstanding contribution rights is about N100 billion.”

Speaking on compliance level of CPS by State Governments, he said Lagos State and perhaps Delta State are the only state that is up to date.

He said others are at different levels of compliances.

“The states are in various stages. We have various states and they have different needs and challenges. The Federal Government has complied the most and we can only encourage the states to also join the CPS.

“Even in the PRA 2014, there is a mention of states; the reality is that Federal Government does not make laws on pension matters for states. The states have rights to do their pension he way they want so we have to continuously engage them based on moral suasion for them to join. The states don’t have the resources the FG has and fiscal discipline is different.

“With the fiscal revenue challenges the states are having, it is not clear when the states will come out of the challenge. The states have revenue challenges and the Federal Government has more revenue streams,” he said.

September 30, 2015
NLNG: it’s not our duty to remit cash into Federation Account

The Nigeria Liquefied Natural Gas Limited has faulted the Nigeria Extractive Industries Transparency Initiative’s (NEITI’s) claim that it has not remitted about $11.6billion (N2.32trillion) to the Federation Account.

The company, in a statement yesterday, said its dividends were paid to its shareholders, which include the Federal Government, represented in the shareholders’ structure by the Nigeria National Petroleum Corporation (NNPC) with 49 per cent, Shell Gas BV, SGBV, with 25.6 per cent, Total LNG Nigeria Limited, with 15 per cent, and Eni International (10.4 per cent).

NLNG said the NNPC received the dividends on the Federal Government’s behalf and should remit to the Federation Account.

Its statement signed by General Manager, External Relations, Kudo Eresia-Eke, reads: “NLNG remains responsible to its shareholders and pays dividends to them according to the shareholding structure.

“NLNG also wishes to emphasize that it continues to conduct all its businesses in full compliance with the laws of the Federal Republic of Nigeria and existing tax regulations, championing compliance and meeting all its applicable tax obligations to federal, state and local governments. A case in point is NLNG’spayment of $1.6 billion to the Federal Government recently as Company Income Tax and Education Tax for 2014 financial year.

“In line with our vision to help build a better Nigeria, NLNG supports the principles and objectives of NEITI, including the promotion of transparency in payments by extractive industry companies to governments and government-linked entities.

“Nigeria LNG remains the most significant arrow-head of the Federal Government’s continuing efforts to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves.”

August 6, 2015
Armed Forces, NNPC, secondary schools, others to remit IGR to govt

The Armed Forces, the police, the National Assembly, the State House as well as ministries and Nigerian missions abroad are to remit 100 per cent of their internally generated revenue (IGR) to the Federal Government.

Besides, the Nigerian National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and the Nigerian Deposit Insurance Corporation (NDIC), among other government agencies, are to henceforth remit part of their IGR to the government.

Federal Government’s education institutions, including secondary schools, are expected to remit 80 per cent of their operating surplus to the government.

Of the 853 Ministries, Departments and Agencies (MDAs), 243 are expected to remit 100 per cent of their IGR; 403 departments and agencies are to henceforth remit 25 per cent of their gross IGR.

Two hundred and seven departments and agencies will remit 80 per cent of their gross operating surplus. Others, tagged as “special”, will have their remittances determined by the Federal Ministry of Finance.

The directive followed a comprehensive amendment of the Fiscal Responsibility Act (FRA), 2007 by the House of Representatives’ Committee on Finance.

The Chairman of the Committee, Abdulmumin Jibrin, yesterday in Abuja, said the amendment became expedient because of the loss of over N2 trillion yearly to the Federal Government as its independent revenue.

Jibrin, who explained that the committee was working on a comprehensive amendment to the FRA 2007, added: “As all MDAs of government raise one form of IGR or the other, the committee has resolved to expand the current schedule of the Fiscal Responsibility Act 2007 from 31 agencies to include all MDAs operating in the country.

“To this end, the committee has decided to amend Section 22 of the Act to reflect the following categorisation: ‘Special cases, including dividend remittances, Public Private Partnership (PPP) proceeds and others as may be determined by the Ministry of Finance in conjunction with the Fiscal Responsibility Commission’.”

According to him, the committee will not leave any room for manipulation by the agencies, as was happening before.

Jibrin said: “For the purpose of clarity and to avoid ambiguity, the committee plans to reflect under each categorisation all Federal Government Ministries, Departments and Agencies (MDAs).

“All MDAs are to also disclose to the committee all partnerships with the private or public sectors not listed below and the respective business arrangements, that is, equity, debt, management contract, among others.

“Failure of any MDA, MDA joint venture or MDA partly owned enterprise to be captured in this exercise will be deemed to be a deliberate act of suppressing government revenue”.

Jibrin advised any agency that has reservations over the categorisation to approach the committee with its concerns.

September 12, 2013