Revenue-generating agencies have failed to remit a staggering N4.1 trillion to the Federal Government as of June 2024, according to a report by the Federation Accounts Allocation Committee (FAAC).
This figure marks a significant increase from the N3 trillion reported in May 2024, even after agencies settled outstanding debts of N94.96 billion in the same month.
The FAAC report, signed by the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission, Mohammed Shehu, reveals a breakdown of the unremitted funds: $165.07 million (N178.52 billion) and N3.92 trillion, a steep rise from the previously unresolved $36.33 million (N51.88 billion) and N2.98 trillion.
Key debtors include the Nigerian National Petroleum Company Limited (NNPC), which owes N940.62 billion. The Nigerian Upstream Petroleum Regulatory Commission and NNPC combined owe $23.81 million and N1.94 trillion.
Moreover, the Federal Inland Revenue Service and NNPC have unresolved remittances totalling $141.25 million and N1.04 trillion, while the Ministry of Solid Minerals Development and the Central Bank of Nigeria owe N48.75 million.
This issue is not new, as reports two months ago warned that the government stood to lose over N3 trillion if these agencies did not reconcile their unremitted earnings. The FAAC’s post-mortem sub-committee has been working with the relevant agencies to address these discrepancies, but the amounts remain unresolved.
In its June 2024 meeting, the FAAC reported that efforts to recover these funds continue, with a total of $165.07 million and N3.92 trillion still outstanding. While some progress has been made—$64.07 million and N94.96 billion were reconciled and paid into the Central Bank’s accounts in May—the cumulative outstanding arrears from January to May 2024 amount to N537.35 billion.
The FAAC has referred additional unresolved payments totaling $180.23 million and N2.54 trillion, dating back to June 2023, to the Stakeholders Alignment Committee for further reconciliation.
Kaduna State’s Finance Commissioner, Shizzer Bada, expressed concern over the escalating arrears, which have ballooned into trillions of naira between 2023 and 2024. She urged for expedited action in concluding the reconciliation process with the agencies to ensure these funds are remitted to the Federation Account promptly.
