By Akinsuroju Olubunmi
Reps probe N15bn payment to Remita: Allegations of revenue sharing unveiled
The House of Representatives’ Public Accounts Committee has launched an investigation into the N15bn payment made to Remita from the Office of the Accountant-General of the Federation over two years. The committee has raised concerns over the transparency and legality of this transaction, accusing both the Central Bank of Nigeria (CBN) and commercial banks of complicity in the sharing of the remittance.
According to Chairman Bamidele Salam, the payment made to Remita from 2016 to 2018 lacks proper documentation and contractual agreements. He questioned the source of the funds used for the payment, highlighting the absence of budget provisions for such transactions.
Salam further alleged that Remita and System Spec, entities responsible for revenue collection on behalf of the Federal Government, have been sharing 50% of the proceeds, while the remaining portion is divided among banks and the CBN. This practice, he asserts, has led to a significant shortfall in Value-Added Tax (VAT) remittances to the Federal Inland Revenue Service (FIRS).
Expressing concerns over the lack of transparency in revenue sharing, Salam emphasized the need for banks to directly remit funds to FIRS. He raised questions about the accountability and tracking mechanisms for such transactions, particularly with Remita’s proposed method of money distribution.
In response, the Director of Banking Services at the CBN, Mr. Ahmed Abdullahi, defended the selection of Remita and System Spec for revenue remittance, citing their track record in similar services to banks.
The Chief Accountant of the Treasury Single Account Department, Oyewole Adewale, representing the Accountant-General of the Federation, accused the CBN of non-compliance with reconciliation efforts regarding revenue accrued through the Treasury Single Account.
Aderemi Atanda, Director of Remita Payment Services Ltd, reiterated the company’s revenue-sharing model, confirming that 10%, 20%, and 50% of proceeds are allocated to CBN, commercial banks, and Remita, respectively.
As the investigation unfolds, questions linger about the transparency and legality of revenue-sharing practices involving Remita and the alleged complicity of financial institutions. The House of Representatives’ probe seeks to uncover the truth behind the N15bn payment to Remita and ensure accountability in revenue management.
Remita, Revenue Sharing