How Okonjo-Iweala Caused Nigeria To Loose N1.7tn Revenue Between 2012 And 2016 – Senate
A memo signed by a former Minister of Finance, Mrs. Ngozi Okonjo-Iweala, and issued to revenue agencies to remit 25 per cent of revenue they generated to the Federal Government and spend 75 per cent on their expenditures caused the nation a total of N1.7tn revenue loss between 2012 and 2016.
This was contained in a report by Senate Ad Hoc Committee on Alleged Misuse, Under-Remittance and Other Fraudulent Activities, which is chaired by Senator Olamilekan Adeola.
According to the report, the memo dated November 11, 2011, with Reference Number BO/RVE/12235/259/VII/201 by the former minister “to remit 25 per cent only from the revenue generated and use the remaining 75 per cent, is a clear violation of Section 120 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the Fiscal Responsibility Act 2007 as well as the establishment acts of some of these institutions.”
In the report, the Nigerian National Petroleum Corporation (NNPC), generated N15.541tn, while its entire expenditure during the period was N18.657tn, exceeding the corporation’s revenue profile by N3.115tn.
the Nigeria Customs Service, which generated N335.855bn, failed to remit N83.963bn; the Nigerian Ports Authority reportedly remitted N86.636bn to the Consolidated Revenue Fund when it generated N789.104bn; the Central Bank of Nigeria, remitting N13.716bn out of N3.098tn; NIMASA, N184.489bn out of N301.160bn; Nigerian Television Authority, N5.567bn out of N56.817bn.