Revenue-generating agencies associated with the Federation Account Allocation Committee (FAAC) have yet to remit N1.6 trillion into the Federation Account as of last month, according to the Post Mortem Sub-Committee (PMSC) led by former Executive Chairman of the Federal Inland Revenue Service (FIRS), Kabir Mashi.
The outstanding amount owed to the Federation Account from Revenue-Generating Agencies as of April 2023 was disclosed to be $1,365,399,180.04 and N1,632,804,096,701.64. The Nigeria National Petroleum Company Limited (NNPCL) owed $1,023,128,020.92 (or N1,439,662,970,681), FIRS owed $2,594,794.11 or N193,141,126,020.64, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) owed N339,676,365.01.
The FIRS attributed the delay in remitting some revenue to the Federation Account to the agreement between the NNPCL and International Oil Companies (IOCs) regarding remittances. According to the Special Assistant on Media to FIRS Chairman, Johannes Tobi Wojuola, taxes collected by the FIRS are paid directly by taxpayers into the designated CBN Federation Account. However, the outstanding figures primarily stem from unpaid monies by offtakers of crude oil sold by the NNPCL. The NUPRC and FIRS do not have mandates to trade oil. After mining, IOCs pay their royalties, Education Tax, and Petroleum Profit Tax (PPT) to the Federal Government in crude oil. The NNPCL is authorized to sell this crude oil, and the proceeds are subsequently paid to the NUPRC and FIRS.
Wojuola clarified that some payments are not yet due according to the arrangement between the NNPCL and offtakers. These outstanding payments are part of the FAAC process and have been pending for some time. However, outstanding payments by the NNPCL are settled every month under their agreement with IOCs. The PMSC led by Kabir Mashi supported the FIRS's position, stating that the outstanding amounts are still being reconciled at monthly reconciliation meetings between the agencies and the sub-committee.
In addition to the outstanding remittances, the PMSC report also mentioned the remittance of Value Added Tax (VAT) into the federation account. The FIRS collected and remitted N217,742,950,401.10 into the VAT Pool Account for April 2023, slightly lower than the N218,785,754,993.15 remitted. However, the cumulative collection for January to April amounted to N927,337,521,142.91.
Regarding the Electronic Money Transfer Levy (EML), the PMSC reported that the total receipts into the EMTL account from January to April 2023 stood at N56,142,009,346.77. For April 2023, the FIRS collected N15,121,436,356.39 in EML.
In contrast to the arrears or delayed remittances, the PMSC revealed that a total sum of N11,640,615,992.59 was recovered in favor of the Federation Account as outstanding arrears from various revenue sources. This amount included $1,243,521.96 or N539,788,012.40 recovered from the NNPCL Crude Oil Sales Revenue Arrears for April 2023 and $25,520,318.13 or N11,100,827,980.19 recovered from the NUPRC PSC-MCA Royalty for February 2023.
The total recovered revenue into the federation account amounted to USD $26,763,840.09 or N11,640,615,992.59.
The PMSC report also mentioned that NNPC Ltd deducted N190,572,534,815.11 as PMS value shortfall recovery (subsidy) for April 2023. This brought the cumulative deductions between January and April 2023 to a total sum of N1,623,148,984,501.70. The breakdown of deductions was as follows: January 2023, N835,654,008,845.62; February 2023, N1,091,045,872,476.80; March 2023, N1,432,576,449,686.59; April 2023, N1,623,148,984,501.70.
Efforts are currently underway to reconcile the subsidy payments established by NNPC against the amounts withheld by NNPC for subsidy payments in order to resolve the issue.
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