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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

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Customs

Customs threatens to arrest, prosecute air travellers carrying currency above $10,000 threshold without declaration.

-as Nigeria tightens its anti- money laundering laws

Gloria Odion

The Nigeria customs service, in collaboration with other sister agencies, had engaged international airline operators in a sensitization exercise over the need to strengthen Nigeria’s anti- money laundering laws.

The sensitization programme, held at the Nnamdi Azikiwe International Airport, Abuja, was meant to raise awareness on the importance of enforcing Nigeria’s currency declaration laws among inbound and outbound travellers.

The engemement addressed the role of airline personnel in ensuring compliance, especially in reminding passengers about declaration requirements through in-flight announcements, form distribution, and cooperation during customs checks.

Officials emphasised that any passenger carrying over the regulatory threshold, currently $10,000 or its equivalent, is required to make a declaration to the authorities.

Failure to comply, they warned, could result in seizure, investigation, and prosecution under Nigeria’s anti-money laundering laws.

Additional requirements discussed included the mandatory submission of electronic manifests (e-Manifests) before aircraft arrival, as well as complete passenger details such as names, countries of origin and destination, and flight numbers, stating that these records allow customs and security officers to conduct targeted risk assessments and enhance border surveillance operations.

Assistant Comptroller of Customs in charge of the Anti-Money Laundering and Countering the Financing of Terrorism Unit, Salihu Mas’ud, led the engagement and expressed confidence in the outcomes.

According to him, the Service has already implemented several operational tools to support effective enforcement.

“What we have achieved so far is to be able to sensitise them. We’ve gone round to check all the points.

” We have dedicated search rooms for secondary searches. There are dedicated posts for currency declarations, and they are in place.

” Announcements are also being made on the Public Address System. We have also gotten the commitment of the airline operators to ensure that these announcements are also being made on board their flights,” he said.

He added, “We expect higher compliance, and it will strengthen our enforcement mechanism.

” It also ensures that defaulters and violators of currency declarations are detected promptly and forwarded for necessary investigation and prosecution.”

The sensitisation session highlighted the importance of inter-agency collaboration in securing Nigeria’s borders and preventing illicit financial flows.

With growing concerns over terrorism financing and smuggling of undeclared funds, the NCS said sustained partnerships with airline operators, airport authorities, and intelligence agencies will remain key to its success.

Headlines

Opeifa reaffirms commitment to infrastructural upgrade, staff welfare at Northern District headquarters of NRC in Zaria

Funso OLOJO

The Managing Director of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has reaffirmed the commitment of the management of Nigerian Railway Corporation(NRC) to the upgrade of railway infrastructure and staff welfare at the Northern district headquarters of the corporation in Zaria.

Opeifa made the pledge while touring critical assets and infrastructure at the corporation’s district headquarters, Zaria in Kaduna state.

The visit was part of the Managing Director’s ongoing nationwide assessment tour of operational facilities and infrastructure under the Nigerian Railway Corporation.

During his time in Zaria, Dr. Opeifa met with district management and staff, inspected key installations, and reviewed ongoing and upcoming projects in line with the Renewed Hope Agenda of the Federal Government.

As part of his engagement, Dr. Opeifa met with the Staff,Nigerian Union of Railwaymen (NUR), the Senior Staff Association (SSA), Pilot Drivers on training and the Pensioners.

He reassured railway pensioners that issues concerning outstanding pensions are already being addressed, and urged them to remain calm, adding that concrete steps are being taken to resolve all concerns.

“We understand the importance of pension to our retired personnel, and I want to assure you that everything necessary is being done,” Dr. Opeifa stated.

“I will do all within my power to ensure that you receive what is rightfully yours.”

During the visit, Dr. Opeifa also toured key support facilities including the NRC Training School, the District Clinic, the Central Workshop, and the Permanent Ways Hotel.

He commended the efforts of the staff managing these facilities but emphasized the urgent need for upgrades and modernization to improve service delivery, staff welfare, and capacity building.

“To truly transform the Nigerian Railway system, we must also invest in our people, their health, their training, and the infrastructure that supports them,” he remarked.

In a show of gratitude and support, the Railway District Manager (RDM) of the Northern District Zaria , Engr. Adedeji Adewala Rasheed, thanked the Managing Director for the visit and reaffirmed the district’s commitment to the national vision.

“We are honoured by your presence, sir, and I assure you that the Northern District will always be ready to receive you at any time,” Engr. Rasheed stated.

“The Iron Men of this district stand firmly behind you and will give you their full support to ensure that your objectives in transforming the railway system are fully achieved.”

Dr. Opeifa emphasized the importance of the Northern District to the national railway network, particularly in enhancing connectivity between key cities, boosting trade and agricultural logistics, and supporting economic development across the northern region.

“We are committed to revitalizing the railway system across the country, and Zaria remains a critical hub in this transformation,” he added.

“Our focus is on efficiency, safety, and long-term sustainability, ensuring that the NRC meets the demands of a modern transport system.”

The Managing Director was warmly received by other senior officials, who briefed him on current operations, challenges, and areas of opportunity.

Dr. Opeifa assured the team of continued support and strategic interventions aimed at improving service delivery and expanding rail infrastructure.

This visit underscores the NRC’s dedication to closer engagement with its regional offices and stakeholders, reaffirming its mission to deliver reliable and world-class rail transport services for Nigeria.

Headlines

NIMASA reaffirms confidence in indigenous technical ability in ship building and repairs

Funso OLOJO

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, has expressed confidence in the technological competence and abilities of indigenous engineers to carry out ship building and repairs locally.

Dr Mobereola made this assertion in Lagos during his visit to Nigerdock at Snake Island integrated Free Zone,where he had gone to inspect and assess the ongoing maintenance work on the DB Lagos, a special mission vessel used for maritime surveillance and national security operations.

The vessel plays a vital role in combating oil theft, smuggling, illegal immigration, and other maritime crimes within Nigeria’s waters.

Speaking during the inspection, Dr. Mobereola expressed satisfaction with the progress made and described the project as a clear demonstration of Nigeria’s capability to handle sophisticated ship repairs and construction.

“What I am seeing here today is a testimony to the fact that we have the ability not only to repair but also to build here in Nigeria,” he stated.

He further emphasized that the inspection aligns with the vision of the Minister of Marine and Blue Economy, Adegboyega Oyetola, who has prioritized the development of local capacity in shipbuilding and repairs.

“We at NIMASA are demonstrating our belief in this vision by maintaining our own vessels here,” Dr. Mobereola added.

The visit underscores NIMASA’s drive to promote indigenous maritime infrastructure, enhance national security, and advance sustainable growth in Nigeria’s maritime sector.