As part of the Constitutional mandate of the Commission, to monitor revenue accruals from the Non-Oil Sector into the Federation Account, the Commission conducted the exercise through regular monitoring of relevant Agencies particularly Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and the Ministry of Mines and Steel Development (MMSD).
Some of the successes recorded in the course of monitoring revenue accruals into the Federation Account by blocking some leakages are as follows:
Recovery of all Outstanding Liabilities owed by Federal MDAs, State Governments and Local Government Councils
The Commission embarked on recovery of tax liabilities owed by Federal MDAs, State Governments and Local Government Councils in 2017. The sum of N168.45 billion was established during the exercise and agreed to be paid by the stakeholders. The details are as follows:
- Federal MDAs – N 57,178,095,446.65
- State Government – N108,613,512,556.52
- State MDAs – N 1,255,126,275.26
- Local Government – N 2,660,809,331.73
Arising from the reconciliation exercise of States and Local Government Councils, about N15 billion has been paid and remitted into the Federation Account. As a result of the exercise, the State Offices of the FIRS also reported significant increase in the revenue accruable from States and Local Government Councils as they were better sensitised and enlightened on the need for prompt remittance of revenue due to the Federation Account. The FIRS wrote formally to commend the Commission for the success recorded during the exercise.
Similarly, in view of the agreement signed by various recovery Teams, the sum of N7 billion (approximately) was also recovered from the reconciliation and recovery exercise on tax liabilities owed by the Federal and States MDAs embarked upon in 2017. The Department is still expecting more revenue to be recovered as the exercise is ongoing.
The Commission is collaborating with the Economic and Financial Crime Commission (EFCC), Central Bank of Nigeria (CBN) and Office of the Accountant-General of the Federation (OAGF) to reduce incidences of revenue leakages.
Verification and Reconciliation of Taxes Collected by Banks on Behalf of FIRS and NCS
In 2014 the Commission commenced the verification and reconciliation of delayed and unremitted taxes collected by commercial banks on behalf of FIRS and NCS for the period 2008 – 2012. A consortium of Consultants was engaged to provide the technical support to the Commission on the exercise. However, the exercise was concluded in 2016 and the report was submitted to the Stakeholders through the Federation Account Allocation Committee (FAAC) and the National Economic Council (NEC). Sequel to the conclusion of the first phase of the Bank Verification exercise, NEC approved that the exercise be extended from 2012 to 2015. The Commission recovered a sum of about N73 billion from the verification exercise on delayed and unremitted taxes collected by Commercial banks on behalf of FIRS and NCS.
Monitoring of Accruals from the Solid Mineral Sector
The Commission in the course of its monitoring functions observed that the revenue accruing from the Mining Sector was very negligible despite the huge potentials of the Sector for revenue generation. Almost all the States of the Federation have large deposits of different types of solid minerals with huge revenue base. The Commission in collaboration with the Ministry of Mines and Steel Development (MMSD) made concerted efforts which led to the opening of Solid Mineral Account with the CBN. In furtherance to this, the Commission between October and November, 2016 undertook a nationwide monitoring and sensitization exercise of the sector. Consequently, as at December 2018, the sum of N20 billion accrued for the first time into the Federation Account from the solid minerals sector.