The Federation Accounts Allocation Committee (FAAC) has reported that the amount of money unremitted by revenue-generating agencies to the Federal Government has increased to N4.1 trillion as of June 2024. This figure is despite the reconciliation and payment of outstanding debts totaling N94.96 billion in May 2024 by these agencies.
The PUNCH had previously reported unresolved amounts of $165,067,714.53 (equivalent to N178.52 billion) and N3,917,340,180,696.84, which have risen from the initial amounts of $36,329,376.24 (N51.88 billion) and N2,977,561,881,021 recorded in May 2024.
The latest figures were disclosed in a report by the FAAC’s post-mortem sub-committee meeting, signed by Mohammed Shehu, Chairman of the Revenue Mobilisation, Allocation, and Fiscal Commission.
A breakdown of the agencies owing the government includes the Nigerian National Petroleum Company Limited (NNPC), which owes N940.62 billion, and the Nigerian Upstream Petroleum Regulatory Commission, which, along with NNPC, owes a combined $23.81 million and N1.94 trillion. Additionally, the Federal Inland Revenue Service and NNPC have unresolved remittances of $141.25 million and N1.04 trillion, while the Ministry of Solid Minerals Development and the Central Bank of Nigeria owe N48.75 million.
Two months ago, The PUNCH reported that the government risked losing over N3 trillion if revenue-generating agencies did not reconcile unremitted earnings collected.
Kabir Mashi, Vice President of the Post-Mortem Sub-committee, who represented the committee Chairman at the meeting, stated that the outstanding amounts were still being reconciled with the relevant agencies at the monthly reconciliation meetings. The Federation Account Allocation Committee disburses allocations from the revenues generated into the Federation Account, comprising multiple accounts specific to a sector or business type.
In its June meeting update, the chairman reported the total unresolved amount due to the Federation Account from the reconciliation meeting with the Revenue Generating Agencies was $165,067,714.53 and N3,917,340,180,696.84.
The report read, “Outstanding Federation Account Revenue Arising from Inter-Agencies Reconciliation Meeting held in June 2024: The total unresolved amount due to the Federation Account from the reconciliation meeting held with the Revenue Generating Agencies in June 2024 was $165,067,714.53 and N3,917,340,180,696.84. For May 2024, the PMSC would like to inform the plenary that as a result of reconciliation with Revenue Generating Agencies, a total sum of $64,073,123.40 equivalent to N94,964,537,885.84 was reconciled and confirmed paid to the CBN designated accounts.”
The document further explained that the government had recovered a cumulative outstanding of N537.35 billion in five months. “The cumulative outstanding arrears reconciled and paid to the Federation Account from January to May 2024 stood at N537,353,864,835.67.”
It also noted outstanding payments from Revenue Generating Agencies before June 2023, totaling $180,230,895.02 and N2,535,352,533,190.87, which were referred to the Stakeholders Alignment Committee, with the sub-committee awaiting reconciliation outcomes.
Reacting to the situation, Shizzer Bada, Commissioner of Finance for Kaduna State, raised concerns over the accumulating arrears of revenue by RGAs against the Federation Account, which had reached trillions of naira between 2023 and 2024. She advised expediting reconciliation processes with the agencies to resolve the outstanding issues swiftly.
