HomeNewsRMFAC Chair Reveals Billions in Government Revenue Unaccounted for in Commercial Banks

RMFAC Chair Reveals Billions in Government Revenue Unaccounted for in Commercial Banks

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The Revenue Mobilization Allocation and Fiscal Commission (RMFAC) of Nigeria has disclosed that a significant portion of the government’s revenue is currently trapped in commercial banks, unremitted, and unused. This alarming situation was highlighted by the RMFAC Chairman, Mohammed Shehu, during a courtesy visit by the Controller General of the Nigerian Customs Service, Bashir Adeniyi, in Abuja on Wednesday.

Expressing grave concern, Shehu pointed out that the non-remittance of funds by revenue-generating agencies to the government’s coffers has resulted in vast amounts of money being held up in the banking sector. The RMFAC, responsible for the mobilization and allocation of revenue to the three tiers of government in Nigeria, has also been monitoring the financial activities of the Federal, State, and Local Governments to ensure compliance with the law.

Recalling the commission’s achievement in 2023, where it successfully recovered N319bn in unreported funds from government agencies, Shehu condemned the abuse of procedures leading to revenue loss. He specifically cited evasion of levies, duties, and other related revenues as major contributors to this issue, with a large portion of these funds ending up trapped in commercial banks.

The RMFAC Chairman expressed the commission’s readiness to take up the challenge of fulfilling its mandates, in line with the presidential directive to block revenue leakages from all sources. “We are determined to recover these funds to significantly improve revenue mobilisation, block revenue leakages, and advise the present administration on measures to increase revenue generation for the Federation Account,” he stated.

Further to this, Shehu called for support from the Nigerian Customs Service (NCS) in this endeavour. He emphasized the need for a more streamlined approach at the nation’s ports, suggesting the customs be the sole revenue-collecting agency there to enhance efficiency and reduce hindrances caused by the presence of multiple agencies.

In response, the Customs Controller General appreciated the commission’s efforts in identifying potential leakages. He affirmed the NCS’s commitment to surpassing its last year’s revenue target of N3.2tn. He detailed the NCS’s mandate, as empowered by Section 4 of the NCS Act 2023, to collect and account for revenue from various duties and taxes. “For 2023, the NCS was given a target of N3.7trn and generated N3.21trn, which is 87 percent of the total revenue target,” he added.

Adeniyi pledged the NCS’s full support for the RMFAC’s mission to enhance the environment under which revenue is generated, ensure proper accountability through remittances of collected revenue, and block potential drains in the revenue system. He acknowledged the awareness of leakages within the system and the NCS’s commitment to addressing these issues.

This development marks a critical juncture in Nigeria’s efforts to bolster its fiscal responsibility and economic stability. As the RMFAC spearheads this initiative to recover trapped funds, the focus shifts to enhancing accountability and efficiency in revenue collection and remittance, crucial for the nation’s financial health and governance.

 

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