Querying a N15 billion payment to Remita from the Office of the Accountant-General of the Federation over a two-year period, the House of Representatives’ Public Accounts Committee has raised concerns about the legality of the transaction.
During an investigative hearing in Abuja, the committee, led by Chairman Bamidele Salam, also accused the Central Bank of Nigeria and commercial banks of involvement in the distribution of the remittance.
Salam alleged that the payment to Remita from the OAGF between 2016 and 2018 was done without a formal agreement or contract, describing it as an unauthorized disbursement.
Pointing out the lack of budgetary provision for the payment, Salam questioned the source of the funds used for the transaction.
He highlighted the issue of Value-Added Tax (VAT) being included in the payment process, with concerns raised about the proper remittance of VAT to the Federal Inland Revenue Service.
According to Salam, there are discrepancies in how revenue collected by System Spec and Remita for the government is shared, with allegations of irregularities in the distribution among stakeholders.
He emphasized the need for transparency in revenue remittance processes, particularly with banks being responsible for direct remittance to the FIRS.
Representatives from the CBN and the OAGF defended their roles in the revenue reconciliation process, with accusations and counterclaims about the handling of funds and communication breakdowns.
Aderemi Atanda, Director of Remita Payment Services Ltd, provided insights into the percentage sharing model among CBN, commercial banks, and Remita for revenue collections through the Treasury Single Account.
He cited varying collection amounts over different periods, underscoring the importance of accurate and accountable financial management in government revenue operations.