Reps demand details of CBN, NNPCL’s unremitted operating surplus

….Query OAGF over deductions from MDAs’ accounts

By Gift Chapi Odekina

The House of Representatives Public Accounts Committee (PAC) has directed the Office of the Accountant-General of the Federation (OAGF) to provide a comprehensive breakdown of outstanding operating surplus and other revenues allegedly owed to the Federal Government by the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPCL), and other government agencies.

The committee also demanded explanations over allegations that the OAGF withdrew billions of naira from the accounts of several Ministries, Departments and Agencies (MDAs), including the Universal Basic Education Commission (UBEC), without timely refunds.

The directives were issued during an investigative hearing attended by the Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi.

Raising the issue, a member of the committee, Hon. Gboyega Nasir Isiaka, expressed concern over persistent revenue leakages and poor remittances by government-owned enterprises, describing them as a major challenge to Nigeria’s fiscal sustainability.

He noted that despite statutory requirements for government-owned enterprises to remit a significant portion of their operating surplus to the Federal Government, several agencies still had outstanding obligations.

Isiaka urged the OAGF to provide details of the outstanding remittances and assess whether key revenue-generating agencies, including the CBN, Securities and Exchange Commission (SEC), Nigerian Maritime Administration and Safety Agency (NIMASA), and others, were remitting appropriate amounts relative to their financial strength.

Responding, the Director of Revenue and Investment in the OAGF, Makinde Mogaji, disclosed that the CBN alone was allegedly indebted to the Federal Government to the tune of N5.3 trillion in unremitted operating surplus.

According to him, despite efforts by the Public Accounts Committee to recover the funds, the apex bank had yet to comply with the remittance requirement.
He added that while some agencies had made significant payments, including the Federal Airports Authority of Nigeria (FAAN), which reportedly remitted N473 billion, compliance remained poor among several others.

Speaking on the OAGF’s policy of automatic deductions from the accounts of government agencies, the Accountant-General explained that the initiative was introduced as an advance recovery mechanism for operating surplus due to the Federal Government.

He said the policy significantly boosted government revenue last year but faced resistance from some agencies, which subsequently sought presidential intervention for reversals or reductions in the deductions.

According to Ogunjimi, some agencies obtained approvals for total cancellation or reduction of the deductions, while others, including the NNPCL, failed to cooperate with the implementation process.

He revealed that disagreements with the NNPCL over the deductions were still being handled by a post-mortem committee established to resolve the issues.

Mogaji further explained that the automatic deduction system was designed to recover estimated operating surplus in advance, after which final reconciliations would determine whether agencies had been over-deducted or still owed additional remittances.

However, the Chairman of the committee, Hon. Bamidele Salam, questioned the legality of the deductions after several agencies, including UBEC and the National Agency for Science and Engineering Infrastructure (NASENI), petitioned the committee over funds allegedly withdrawn from their accounts.

Salam disclosed that UBEC alleged that about N16 billion due to it under its Authority to Incur Expenditure was not released, while another N15 billion was allegedly withdrawn from its account without being refunded.

He said similar complaints had also been received from NASENI and several other agencies currently under investigation by the committee.

In his response, Ogunjimi defended the deductions, describing them as temporary borrowing approved by the Federal Government to meet urgent national financial obligations.

He maintained that the OAGF did not arbitrarily withdraw funds from agencies but first assessed whether the money had remained idle for extended periods before obtaining approval from the Minister of Finance to utilise it temporarily.

He cited the Tertiary Education Trust Fund (TETFund) as an example, saying over N300 billion borrowed from the agency had been fully refunded.
The committee chairman, however, rejected the justification, insisting that statutory agencies require uninterrupted access to their funds to carry out legally assigned responsibilities.

Salam warned that withholding funds meant for agencies such as UBEC undermines critical government programmes, particularly efforts to tackle Nigeria’s out-of-school children crisis through the provision of schools, learning materials and educational infrastructure.

He directed the OAGF to submit detailed records of all deductions, outstanding refunds and unremitted operating surplus owed by government agencies to enable the committee conclude its ongoing investigations.

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