RMAFC confirms ongoing N4.06trn crude oil forensic audit

The forensic audit on unremitted revenue accrued from the sales of crude oil estimated at N4.06 trillion is still ongoing as at the close of 2015 fiscal year, according to a report from Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) obtained by BusinessDay at the weekend.

Ibrahim Babangida, chairman, House Committee on Finance, gave the information during the budget defence of RMAFC, office of the Accountant General of the Federation (AGF) and Fiscal Responsibility Commission (FRC) before the House Committee on Appropriations Committee.

A report released by NEITI on the revenue accrued from sales of crude oil, gas, petroleum profit tax (PPT), royalties, rentals, dividends from investments, among others, between 2009 and 2011 was put at N21.5 trillion.

According to the NEITI report, $82 billion was made from crude oil sales; $47 billion was released from oil-specific taxes, while $14 billion was made from non-oil related taxes.

The breakdown showed that $30 billion was collected in 2009, $45 billion in 2010, and $65 billion in 2011. The revenue realised between 2009 and 2011 was lower than the sum of $82 billion generated from sale of crude between 2006 and 2008.

According to Babangida, N777.6 billion being outstanding oil subsidy payment by Nigerian National Petroleum Corporation (NNPC) to the Federation Account was recovered during the reconciliation of accounts of NNPC and oil marketers.

The RMFAC has so far recovered N2.5 billion out of over N12 billion unremitted proceeds from taxes trapped in designated banks engaged by Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NSC), he said.

“The collaboration with FIRS for the recovery of tax liabilities of federal, states and LGA has so far yielded over N15 billion, while reconciliation of federal MDAs tax liabilities programmed to commence in 2016,” the Finance Committee’s report stated.

Babangida also explained that the reconciliation of revenue accruable to the Federation Account from Stamp Duties in conjunction with other agencies including NIPOST, NIBSS and oAGF was underway.

While reacting to the non-appearance of the minister of petroleum resources, Ibe Kachukwu, the House threatened to give zero allocation to any sector that failed to defend its budget before various standing committees.

To Joseph Akinlaja, chairman, Petroleum Resources (downstream), Kachukwu, who doubles as the NNPOC group managing director, failed to appear before the committee to defend the budgets of the ministry and its agencies.

Akinlaja said the committee sent four letters to the minister and rescheduled the budget defence in order to ensure for a peaceful collaboration between the Executive and the Legislature, and to have a mutually agreeable time.

He said this never achieved any result as the minister only sent a team of his officials from the ministry and NNPC because he was away on official engagement.

While speaking on the update of budget defence, Abdulmumin Jibrin, chairman, House Committee on Appropriations blamed members of the Executive cabinet for slowing down the consideration and passage of the 2016 budget.

“It is the executive arm that is putting us under pressure to see the budget passed. Some MDAs have failed to appear for budget defence.”

He also assured that the Appropriations Committee would allocate adequate funding to the anti-graft agencies namely EFCC and ICPC in line with the anti-corruption crusade as well as agricultural and solid minerals sectors in tandem with the policy thrust of the present administration.

He said: “One of the policy thrusts of the government is to diversify the economy by going into solid minerals and agriculture.

“But when you look at the allocations you will all agree with me that the allocations to critical sectors; like the solid mineral does not strike a balance with what the government says its policy in terms of diversification.

“So, these are some of what the Appropriation committee will sit and do so that we will be able to pass a budget that will strike a balance with the general policy thrust of various sectors in our national budget.

“With the level the federal government has taken the anti corruption fight, it does not match with the allocation provided for agencies like the EFCC, ICPC.

“We are going to take a very good look at it and see what we need to do so that they can have the kind of allocation that will strike a balance with the policy thrust of the government. Otherwise there is going to be a huge vacuum.”