The Public Accounts Committee of the House of Representatives has raised concerns over the N15 billion payment made to Remita from the Office of the Accountant-General of the Federation spanning two years.
During an investigative hearing on revenue leakages in Abuja, Committee Chairman Bamidele Salam accused the Central Bank of Nigeria and commercial banks of involvement in the distribution of the N15 billion remittance.
Salam highlighted that the payment made to Remita from 2016 to 2018 lacked transparency and was executed without any formal agreement or contract with the OAGF, raising questions about its legality.
He questioned the source of the funds, emphasizing the absence of budgetary provisions for such payments. Additionally, he criticized the practice of including Value-Added Tax (VAT) in Remita transactions without remitting it to the Federal Inland Revenue Service (FIRS) as required by law.
According to Salam, System Spec and Remita, tasked with revenue collection for the Federal Government, allegedly share 50% of the revenue, while banks and the CBN also benefit from the process.
He expressed concerns about the lack of transparency in the distribution of funds and called for better accountability mechanisms.
Representatives from the CBN defended the selection of Remita and System Spec for revenue remittance, citing their experience in providing similar services to banks.
However, the Accountant-General’s office accused the CBN of failing to cooperate in reconciling revenue accrued through the Treasury Single Account (TSA), emphasizing the need for a more efficient remittance process.
Aderemi Atanda, Director of Remita Payment Services Ltd, presented records of TSA collections, indicating varying amounts collected over the years.
The committee vowed to conduct a thorough reconciliation to uncover any discrepancies and ensure proper remittance of funds to the FIRS, emphasizing the importance of transparency and accountability in revenue management.
