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‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account - Politics - Nairaland

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‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Islie: 12:45pm On Jan 03
BY DESMOND OKON


Weeks after the Federal Competition and Consumer Protection Commission (FCCPC) said it generated N56 billion and remitted only N22.4 billion to the federation account in 2022, the federal government has issued a circular directing “automatic” 50 percent remittance of the total revenue of all its self-funded enterprises.

It is unclear if the two events are related, but a presidency source told TheCable the reform was “long overdue”.

Previously, self-funded agencies, also called “Super Agencies”, were allowed to claim up to 50 percent of their revenue as expenditure and keep 20 percent of the balance as “operating surplus” — the excess of revenue over expenditure.

“Super Agencies” — so called because of the enormous financial resources at their disposal — keep a combined total of over N1 trillion annually from the revenues collected by them.

Although they receive no budgetary allocation from the federal government, questions have been raised over the huge sums they retain — with some agencies getting more than the legislative and judicial arms of government.

Some of the major agencies affected are the Federal Inland Revenue Service (FIRS), the Nigerian Ports Authority (NPA), the Nigerian Communications Commission (NCC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Customs Service (NCS).

Waziri Adio, executive director of Agora Policy, the respected public policy think-tank based in Abuja, recently raised an issue with the funding arrangement, warning that “these cash-saturated agencies become founts of mind-blowing profligacy and sleazy vehicles for patronage and rent-extraction. A variant of Parkinson’s Law states that expenditure always rises to meet income. In short: more money in this form leads to more expenses, not more sense. And this is exactly what happens to these agencies.”


IMMEDIATE IMPLEMENTATION

The implementation of the new order followed a presidential directive, according to a circular from the ministry of finance, dated December 28, 2023.

The directive was sequel to a similar circular dated December 20, 2021, addressing agencies’ revenue remittances to the consolidated revenue fund (CRF).

The 2021 circular had asked all self-funded federal government agencies and parastatals to remit only 80 percent of the 50 percent accruable to the sub-recurrent account (SRA), allowing such agency to retain 20 percent in its general reserve as operating surpluses.

This means that if 50 percent of an agency’s total revenue is N20 million, N16 million (80 percent) will go to the SRA. The remaining N4 million (20 percent) will be kept in the agency’s general reserve.

However, issuing fresh guidelines for implementation in the latest circular, the finance ministry directed agencies and parastatals to remit 50 percent of their gross internally generated revenue (IGR) to the SRA — a sub-component of the CRF.

While there was no mention of accruals into the general reserve of agencies, the deductions will also be implemented on all statutory revenue lines like tender fees, contractor’s registration, sales of government assets, TheCable understands.

In addition, the finance ministry said all ministries, departments and agencies (MDAs) that are fully funded through the federal government budget and on the schedule of the Fiscal Responsibility Act, 2007, should “remit one hundred percent (100%)” of their IGR to the SRA.

“All partially funded Federal Government Agencies/Parastatals (receiving capital or overhead allocation from the Federal Government Budget) should remit fifty percent (50%) of their gross Internally Generated Revenue (IGR), while all statutory revenue like tender fees, contractor’s registration, sales of government assets etc should be remitted one hundred percent (100%) to the Sub-Recurrent Account,” the finance ministry added.

According to the circular, the deductions will be implemented in the accounts of 68 agencies listed under the Fiscal Responsibility Act of 2007.


NEW ACCOUNTS FOR AGENCIES

For effective implementation, the office of the accountant-general of the federation (OAGF) was instructed to open new treasury single accounts (TSA) for all the agencies listed in the Fiscal Responsibility Act.

According to the finance ministry, the TSA sub-accounts currently operated and maintained by the agencies for receiving revenue from the public shall be blocked from access, and placed under the full control of Wale Edun, the minister of finance and co-ordinating minister of the economy and the accountant-general of the federation.

It was also learnt that the new accounts shall be credited with inflows in the “old accounts based on the new policy implementation of 50 percent auto deduction in line with Finance Act,2020 and Finance Circular, 2021, 50% cost to revenue ratio”.

“The Office of the Accountant General of the Federation (OAGF), subject to the categorization of Agencies shall map and automatically effect direct deduction of 50% (fifty percent) on gross revenue of Self/partially funded Agency/Parastatals and 100% (one hundred percent) for fully funded Agencies/ Parastatals as interim remittance of amount due to the Consolidated Revenue Fund,” circular reads.

The federal government said the move is meant to improve revenue generation, fiscal discipline, accountability and transparency in the management of government financial resources and prevention of waste and inefficiencies.

While this may be unsavoury for the agencies, the deductions may be applauded by pundits who believe some agencies generate too much money than they may need.

For instance, in the 2024 budget of government enterprises, NPA projects N538 billion in revenue, and an expenditure of N349 billion, with a CRF remittance of N149 billion (28 percent). NUPRC expects to generate N232 billion but is billed to remit only N2 billion (0.88 percent).

The CAC, on the other hand, projects a N28 billion revenue, a CRF transfer of N11 billion (40 percent), and an expenditure of N14 billion. Similarly, the NMDPRA said it will rake in N212 billion and transfer only N84 billion (40 percent) to the CRF.

Analysts view such humongous revenue generation by agencies as problematic and often counter-productive as some organisations tend to prioritise money at the expense of their core mandates or impose unnecessary costs on businesses which could undermine national competitiveness.


DEAFULTING ACCOUNT OFFICERS WILL BE PUNISHED’

The effective implementation of the deduction means that agencies will have just enough revenue to fund their expenditures as the federal government will now collect the excess.

Therefore, the ministry urged all accounting officers, directors of finance and accounts, directors of internal audit, heads of accounts and heads of internal audit units of MDAs “to give this circular the widest circulation and ensure strict compliance”.

The ministry also said it would partner with the OAGF on appropriate disciplinary actions and sanctions against “defaulting accounting officers of agencies/parastatals found culpable of violating the contents of this Finance Circular and in accordance with the Fiscal Responsibility Act”

https://www.thecable.ng/exclusive-super-agencies-directed-to-remit-50-of-revenue-to-federation-account/amp

10 Likes 1 Share

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by sukkot: 12:58pm On Jan 03
WOW aint that something

3 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by tiswell(m): 1:00pm On Jan 03
We never see the effects of the ones remitted already.


Just dey loot dey go

24 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Opportuneke(m): 1:00pm On Jan 03
Correct 👍

Follow those agencies bumper to bumper. They are perceived to be saboteurs.

The kinds of illegal act and racketeering going on lowkey is unexplainable 🧐

Start blocking their chances of looting ✍🏻

lexy2014:


how will this directive stop the illegal acts and racketeering?

It shows the federal government has started reducing those agencies loots and it’s a step in the right direction which we need to be sincere about regardless of our party affiliations.✍🏻

If you could recall, the federal government has directed MDAs to as a matter of urgency submit their monthly reports on how their allocations are being used.👍

Whoever can’t defend the spending of allocations will be held liable and won’t have the subsequent allocations released to him.

We are getting there gradually.🙌🏻

The era of accountability is setting in gradually and as time goes on the system will be rid of corruption ✌️


jaxxy:



Leadership is by example. Can FG show us some financial accountability and transparency?

How are the monies allocated and revenues managed?

That is where our own responsibilities sets in.

Demanding for accountability ✍🏻

We need to hold them for that 👌🏻

13 Likes 4 Shares

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by davidluv(m): 1:01pm On Jan 03
Some people ain't gonna like this at all 😀

14 Likes 2 Shares

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Kcfresh2103(m): 1:01pm On Jan 03
undecided
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by ATEAMS: 1:01pm On Jan 03
Indeed
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by accantmanz: 1:01pm On Jan 03
What percentage were they remitting before?

1 Like

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by DeLaRue: 1:03pm On Jan 03
It is unbelievable that all these years some of these agencies have effectively been working for themselves and remitting a small fraction to the government.

Even with this new directive, agencies like the NPA will still keep billions for themselves.NPA claims to spend over 350 billion each year. Ole! For what.

The Federal government is basically now begging the agencies to please send 50% The other 50% nko?

Which kind wahala have we got ourselves into in this country.

No wonder there is always desperate lobbying to be members of the board of these agencies. The greedy board members must be making billions for themselves every year.

All these agencies should be remitting 100% of their revenue and be funded directly by the government.

14 Likes 1 Share

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Irupetepete: 1:05pm On Jan 03
Mad money dey this country, only few dey enjoy am...
Na only Nigeria people dey buy property for intimidation sake.
How much we dey buy Akube before?
This country just get as he be

7 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Oakenshield: 1:05pm On Jan 03
Country were money dey everywhere but only few touches it

3 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by fridaymantraz: 1:06pm On Jan 03
So they're trying to curb the corrupt spending now.
Won't the money just go to another person's pocket now?
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by seguno2: 1:07pm On Jan 03
tiswell:
We never see the effects of the ones remitted already.

Just dey loot dey go

Why do we allow them to loot our commonwealth and then wail endlessly for the suffering they inflict upon us ??

1 Like 1 Share

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by RandomFellow: 1:07pm On Jan 03
Way to go!!! But I hope they won't underquote their revenues in order to keep a larger chunk (more than the allowed 50%), for themselves

4 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Almunjid(m): 1:08pm On Jan 03
tiswell:
We never see the effects of the ones remitted already.


Just dey loot dey go
Pessimist sighted. Me too, I never see the benefits of u being a Nigerian. grin

9 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by MykellOni(m): 1:10pm On Jan 03
A
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Judolisco(m): 1:11pm On Jan 03
Most people no go like dis news... Money dey naija iswr

2 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by gloryman91: 1:12pm On Jan 03
Is FRSC not a revenue generating agency with fines, Drivers License, number plates, tankfarms, grants, donations and others ?

Especially with the management emphasis on booking offences instead of cautioning politely .

God help us in this country.

Aamin 🙏♥️.
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by lexy2014: 1:18pm On Jan 03
Opportuneke:
Correct 👍

Follow those agencies bumper to bumper. They are perceived to be saboteurs.

The kinds of illegal act and racketeering going on lowkey is unexplainable 🧐

Start blocking their chances of looting ✍🏻

how will this directive stop the illegal acts and racketeering?

1 Like

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by lexy2014: 1:20pm On Jan 03
Almunjid:

Pessimist sighted. Me too, I never see the benefits of u being a Nigerian. grin

what has what he said got to do with being a pessimist or otherwise?

since you are optimist, can you tell us what has been done with all the revenue remitted?

1 Like

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by saintmm(m): 1:22pm On Jan 03
Wow!
See money.
Government agencies using government name and structures to work and enrich themselves.
Imagine one of them saying they will remit 0.88% and another one saying 28%! No single one planned to remit just 50% let alone above it and FG is always going out borrowing, ASUU on strike because of lack of funds.
Waiting to see the abracadabra going on in NNPCL

4 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Almunjid(m): 1:24pm On Jan 03
lexy2014:


what has what he said got to do with being a pessimist or otherwise?

since you are optimist, can you tell us what has been done with all the revenue remitted?
Another pessimist sighted. grin

3 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Olatara(f): 1:26pm On Jan 03
RandomFellow:
Way to go!!! But I hope they won't underquote their revenues in order to keep a larger chunk (more than the allowed 50%), for themselves
They should be audited.

1 Like

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by vexing(m): 1:34pm On Jan 03
tiswell:
We never see the effects of the ones remitted already.


Just dey loot dey go

They will use the money to build car park
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by lexy2014: 1:34pm On Jan 03
Almunjid:

Another pessimist sighted. grin

what has what he said got to do with being a pessimist or otherwise?

since you are optimist, can you tell us what has been done with all the revenue remitted?
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by AKWATGOLD1(m): 1:35pm On Jan 03
Federal Inland Revenue Service (FIRS) in view.

2 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by lexy2014: 1:35pm On Jan 03
Olatara:
They should be audited.
who will audit them?
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by Themanleshey: 1:36pm On Jan 03
lexy2014:


what has what he said got to do with being a pessimist or otherwise?

since you are optimist, can you tell us what has been done with all the revenue remitted?

So all the allocations that are being paid to each states monthly is derived from trees inside the forest ?

You are all shouting increase minimum wage , no be to get more money from these excesses so that federal government can fund those things and more .

3 Likes

Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by lexy2014: 1:37pm On Jan 03
saintmm:
Wow!
See money.
Government agencies using government name and structures to work and enrich themselves.
Imagine one of them saying they will remit 0.88% and another one saying 28%! No single one planned to remit just 50% let alone above it and FG is always going out borrowing, ASUU on strike because of lack of funds.
Waiting to see the abracadabra going on in NNPCL

if agencies have not been remitting, then what was TSA meant for and what happened to all the money that went in there?

is it because agencies did not remit 50% of their revenue that made FG to go a borrowing?
Re: ‘Super Agencies’ Directed To Remit 50% Of Revenue To Federation Account by RandomFellow: 1:38pm On Jan 03
Olatara:
They should be audited.


Lol... I can tell you that Auditors can be bought! Imagine the auditors, for example, going home with extra 100-200m each... They'll give you paper and biro to write your report yourself

1 Like

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