The Nigerian’s House of Representatives on Wednesday mandated It Committee on Public Accounts to investigate revenue leakages through the Remitta platform.
The House also expressed displeasure over the non-compliance by revenue generating agencies of government on standard operating procedures and other allied service level agreements signed among deposit money banks, office of the AGF, Systemspec, Nigeria Interbank Settlement System (NIBSS) and the Central Bank of Nigeria (CBN) for further legislative action.
The motion titled, “Call to Investigate Revenue Leakages and Non–remittance of Revenues Generated through the Remitta Platform” was sponsored by Rep Jeremiah Umaru (APC, Nassarawa) and Rep. Jafaru Gambo (APC, Bauchi).
Leading debate on the motion, Rep. Umaru noted that Nigeria is not experiencing an expenditure issue but rather a revenue issue.
The House also noted that, “Remita is a software cum financial service platform owned by System-Specs which is a Private Company in charge of managing Government Revenues, it has served as a gateway for the Treasury Single Account (TSA) of the Federal government since 2012 though fully adopted in 2015 and used in the collection of Government Revenues over the years;
He also said that, “over 8.7 trillion naira had been processed through the platform before the deployment of the software, the Nigerian government had over 15,000 Bank Accounts operated by Ministries, Departments and agencies (MDAs), the proliferation of accounts has moved from deposit money banks to Central Bank of Nigeria allowing MDAs to create multiple sub-accounts thereby negating the TSA Policy of the Federal Government.
He further explained that, “the TSA system has created a cashless economy, transparency and effective tracking of cash assets with attendant accountability. It has not indeed fully blocked leakages and abuses by the proliferation of CBN Sub-Accounts;
The lawmaker further explained that 1% of the funds collected is charged as commission for making use of the platform and shared among SystemSpecs (owner), Deposit Money Banks(processor) and Central Bank of Nigeria (License issuer) in the ratio of 50:40:10 respectively. This is alarming and unacceptable;
Consequently, he expressed concern that “despite the benefits and reasons for on-boarding the Remita Platform, the rate of revenue leakages is worrisome apart from non-compliance substantively with Standard Operating Procedures and other allied Service Level Agreements signed by parties;
“Disturbed that if this scenario continues unabated, the government will continue to experience a revenue shortfall and this will prevent the government from meeting the rising demand for good governance and infrastructural development from citizens;
“Concerned that a larger percentage of deposit money banks has formed the habit of delay in on-ward remittance or sweeping of revenues collected to the Central Bank of Nigeria.”
