Headlines

Audit report exposes Customs, NNPC under- remittance to Federation account.

Aghughu Adolphus, Auditor-General of Federation

Eyewitness reporter

The 2019 Auditor- General’s Federation Annual Report has shown that the country may have been shortchanged to the tune of N666.15 billion due to the discrepancies observed in the financial books of the Nigerian National Petroleum Corporation (NNPC) and Nigeria Customs Service (NCS).

Section 85(5) of the 1999 Constitution of the Federal Republic of Nigeria, (as amended), states that “the Auditor-General shall, within ninety days of receipt of the Accountant-General’s financial statement, submit his reports under this section to each House of the National Assembly and each House shall cause the reports to be considered by a committee of the House of the National Assembly responsible for public accounts”.

In compliance with the provisions of the 1999 constitution of the Federal Republic of Nigeria, on August 18, 2021, the Auditor-General for the Federation, Aghughu Adolphus, submitted to the Clerk of the National Assembly the Annual Report on the Federal Government of Nigeria Consolidated Financial Statements (CFS) for the year ended 31st December 2019.

A review of the Audit report revealed that some of the figures, particularly those of the NNPC and NCS did not tally.

Thus, it may have led to a huge loss of revenue to the government.

On page 50 of its 2019 Annual Reports and Financial Statements, the NNPC-National Petroleum Investment Management Services (NAPIMS) reported that it transferred the sum of N1.27 trillion to the Federation Account

However, in the 2019 Audit report, the Accountant-General of the Federation (AGF) who is the Chief Accounting Officer for the receipts and payments of account of the federation, noted in his records submitted for audit that only N608.71 billion was received as a remittance by NNPC into the Federation Account for 2019.

This shows a difference of N663.90 billion, between the figure NNPC-NAPIMS reported in its audited financial statements and the amount the AGF claimed the NNPC transferred into the Federation Account as remittance for 2019.

Similar discrepancies were noted in the financial books of the Nigeria Customs Service.

As noted in the Auditor’s report, the NCS generated revenue of N841.27 billion in 2019. This exact amount was supposed to be remitted by NCS to the Federation Account.

However, only the sum of N839.02 was remitted to the Federation Account through the Nigerian Integrated Customs Information System II (NICIS II), indicating that the total money remitted fell short by N2.26 billion.

If the NCS’s N2.26 billion variance is added up with the N663.90 billion shortfall observed in the financial statements of NNPC and AGF’s record, it brings the total figure to N666.15 billion.

As the Auditor General noted in the report, these discrepancies mean a loss of revenue to the government and could lead to difficulty in funding the (2019) budget.

True to the worries expressed by the Auditor-General in the 2019 Audit report, it was actually difficult for the government to fund its 2019 budget as the government resorted to borrowing.

In December 2018, President Buhari presented to a joint session of the National Assembly a proposed budget of N8.83 trillion for the 2019 fiscal year.

In his budget presentation, the President noted that the 2019 budget had a projected deficit of N1.86 trillion which was to be financed by borrowing.

The country’s Finance Minister, Zainab Ahmed stated clearly that, “we (the government) intend to fund the 2019 budget through borrowing locally and internationally with a spread of 50:50”, indicating that the government lacked the necessary revenue to fund its budget for that year.

The 2019 budget was not the first the government-financed through borrowed funds.

Prior to this, the government has borrowed both home and abroad to help to finance its budgets and to fund infrastructure projects, the trend which continues till today.

However, if the N666.15 billion arising from the differences in the financial records provided by the NNPC and AGF, as well as that of the NCS had been fully remitted to the Federation Account as the Audit report showed, it could have potentially reduced the amount the government borrowed to fund the 2019 budget by 35.71%.

This could have also reduced the country’s debt burden which currently stands at N35 trillion and is projected to rise to the tune of at least N41 trillion before the end of 2022.

While the government continues to devise ways to tackle the problem of revenue shortages that have made it difficult to fund its annual budgets, economic experts advised that the Federal Government should follow the recommendations of the Auditor General by ensuring that the management of the NNPC provide reasons for the discrepancy between what it reported in its NNPC-NAPIMS audited financial statements and the figure reported by the AGF as NNPC-NAPIMS remittance into the Federation Account for 2019.

The same should apply to the management of the NCS.

Related Topics:Customs featured NNPC under remittance

Up Next

The thriving business of corruption at Nigerian ports

Don't Miss

Abubakar Ali Peters, Nadabo Energy boss, on trial over alleged N1.4bn oil subsidy scam.

Click to comment

Headlines

May Day: Mobereola salutes maritime workers for passion, dedication to building virile industry

Gloria Odion, Maritime reporter

The Director – General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, has saluted the courage , passion and dedication of maritime workers to building strong and virile industry.

In his message at the Workers’ day on May 1st, 2026, the NIMASA DG extolled the virtues of workers and acknowledged the distinguished service of various stakeholders whose efforts he noted continue to significantly contribute to the development of the Nigerian maritime industry.

Dr. Mobereola, while wishing stakeholders a Happy Workers’ Day said “to all the amazing officers and stakeholders in the maritime sector who bring their passion and expertise to work daily.

“Thank you for your dedication and invaluable contributions”.

He emphasized that as a regulator, the Agency remains committed to its oversight function of regulating maritime labour activities in the industry in line with extant instruments and the expectations of the theme of the 2026 Workers’ Day, which focuses on safety, dignity and productivity.

Customs

Kaila, Seme Customs CAC, seeks collaboration with stakeholders to achieve seemless trade along border corridor

Funso OLOJO, Editor

The new Area Controller of the Seme Command of the Nigeria Customs Service, Comptroller Abdullahi Kaila, has reached out to traditional rulers and sister agencies at the border communities to ensure the achievement of his mandate of detection, determent of smuggling, revenue generation and trade facilitation along the border corridor.

To achieve these objectives, Comptroller Kaila went on tour of the communities within the border corridor where he met and sought for the support and cooperation of major critical stakeholders, including the traditional rulers and sister agencies.

According to him, his objective was to eradicate trade hindrances affecting free movement of goods and services along the Lagos-Abidjan business corridor.

Speaking at the Palace of Oba Akran of Badagry Kingdom, the Customs Area Controller condoled with the royal family and entire people of Badagry kingdom on the passing away of HRM De Wheno Aholu Menu Toyi I who was a well recognized traditional ruler across the border communities.

“”The purpose of my visit is to introduce myself as the Area Controller of Seme Command and to equally seek your royal blessing and support to achieve the core mandate of the service.

“Our priority remains to generate revenue, facilitate trade, and suppress smuggling.

“And we in the Customs believe that without due support and co-operation from traditional rulers, we can not have effective performance of our functions as Customs officers” he said

The King Regent, Chief Abel Ogunbiyi, who described Kaila as the son of the soil, added that “We have listened to your request.

” Know that Badagry is a very peaceful town, and we will keep collaborating with you in safeguarding our borders and in promoting legitimate trade, ” he stated.

Comptroller Kaila also visited the Onibereko of Ibereko Awori-Kingdom, where the monarch, Oba Israel Okoya, signifies his commitment to fostering the service relationship with residents living within the border communities

“I welcome you to Badagry and be rest assured that I will always talk to my people whenever the need is required.

” In our town, our youth does not engage in illegalities as I have no other choice than to assist you in achieving the government mandate, ” he mentioned

While at the Palace of Alapa of Apa Kingdom, the king HRM Oba Oyekan Ajose Ilufemiloye commended and described the CAC, Comptroller Kaila as a professional, seasoned and well respected officer as described by indigenes of border communities.

“I promise you that I will always assist you in my area for anything that you need.

“Our border here has been peaceful because our youth always listen to the elders, and I know with your presence here, things will change for the better, ” he said

In his efforts to consolidate on existing synergy between sister security agencies, Kaila also visited Headquarters of 653 Nigerian Air force base, Ahanve-Badagry.

The Commanding Officer, Group Captain Hungruy Medugu,expressed the readiness of the formation to always support the command in achieving its mandate.

“Our collaboration has been key to various successes we have recorded in our area of responsibility.

” Your presence here strengthens existing bonds of inter-agency collaboration between both Services, and we will not take it for granted ,” he said

The Area Controller then ended his familirisation tour with seeking for mutual cooperation with a visit to the Republic of Benin Police office, showing his readiness to eradicate hindrances affecting the free movement of goods and services across the border.

Headlines

Opeifa decries encroachment on NRC properties across the country

— praises collaboration with Abia, Enugu govts.

Funso OLOJO, Editor

The Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has reiterated his displeasure over the widespread practice of encroachment on the properties of the Nigerian Railways Corporation across the country, warning that such action would not be tolerated by his administration.

Opeifa was speaking during the separate meetings he recently had with the governments of both Abia and Enugu states.

Represented by the Railway District Manager, Eastern District, Mr. Agwonye Francis Ejike, the NRC boss quickly condemned the occupation of the Corporation’s right- of – way by squatters in Umuahia, while correcting the wrongly- held belief that the Railway is defunct.

Opeifa however applauded the cordial and collaborative relationship between the Corporation and the governments of both Abia and Enugu.

According to him, such productive harmony can only yield even greater positive results for the benefit of the people.

During the Umuahia meeting, Dr. Opeifa strongly praised the Abia State Government for its crucial assistance in clearing the NRC’s right-of-way within Umuahia.

He reiterated unequivocally that no one is permitted to build any structure on railway property without obtaining express approval from his office.

Appealing directly to the public, he urged for greater patience, stressing that the plans for the critical track extension from Aba, through Umuahia to Enugu and beyond, remain very much on course.

Responding on behalf of the Abia State Government, Mr. Kingsley Agomoh stated that the State Government is actively engaging all stakeholders by providing alternative, seamless locations for those currently conducting business on the railway right-of-way.

He further revealed that the state government has already finalized plans to plant trees along the route, creating a leisurely and aesthetically conducive environment for relaxation, replacing previous commercial activities.

The high-powered team then embarked on an extensive inspection of the alternative relocation site for displaced persons; the demolition site where iron barrier installation is progressing; the Umuahia Central Bus Terminal; the site for the new Umuahia Railway Station; and the route for the proposed link road passing through the existing railway station.

The meeting also explored the provision of a temporary location for the Railway Police and the PTO, pending the construction of the new Umuahia Station, which is designed to include a police station and other NRC offices.

The same impactful message was delivered to Enugu State, where the Commissioner of Transportation, Dr. Obi Ozoh (representing the State Government), equally assured the NRC MD of the Enugu State Government’s unwavering commitment to collaborating with the Corporation to achieve its aims and objectives.

Describing Dr. Opeifa as a personal friend from their private sector days, Dr. Ozoh lauded him as a leader who “knows perfectly well what he is doing.”

He further assured the NRC that the Enugu State Government will actively assist in demolishing any obstruction on the Corporation’s right-of-way, stressing that the state eagerly awaits the flag-off to recommence construction of the rail line from Aba to Enugu and beyond.