The House of Representatives on Tuesday vowed to compel the management of the Nigerian Export Processing Zones Authority (NEPZA) to refund the alleged N13.3 billion unremitted internally generated revenue (IGR).
Speaking at the resumed investigative hearing into the unremitted funds by federal ministries, departments and agencies (MDAs), Hon. Uyime Idem, averred that directed the representatives of the Nigerian Export Processing Zones Authority (NEPZA) to reconcile the Agency’s accounts with the Consultant within one week.
He however threatened that the committee will be left with no option to compel the agency to refund the sum of N13,367,993,544.49 to Federal Government coffer at the expiration of the ultimatum.
According to the documents presented to the committee, NEPZA generated total sum of N49,492,356,251.53, with total expenditure of N39,764,281,044.69; operating surplus of N9,728,075,206.84 and depreciation of N4,965,898,859.11 while the 80% operating surplus stands at N15,947,637,768.76.
However, the document showed that the actual remittance stands at N2,579,644,224.27 leaving the balance of N13,367,993,544.49.
In his remarks, NEPZA’s Director, Finance and Administration, Mr Oyesola Oyekunle, who dismissed the allegation, argued that the Agency was not in any way indebted to Federal Government, adding that all revenues generated over time have been paid to government up to date.
In response to the 80% operating surplus to be remitted to the CRF, Mr. Oyekunle disclosed that the Agency as a self-funding entity, remitted only 25 percent generated revenue to government to the tune of N3.93 billion to government, making it to be up to date in payment between the period under review which is the year 2000 to date.
According to the director, the agency operates under a circular issued by Federal Ministry of Finance, Budget and National Planning and not stipulated extant financial laws as expected by the Committee.
While giving update on the computation carried out by the Committee, Hon. Idem said: “The Authority (NEPZA) has provided some information to the committee and the outcome of our review is as follows: The net unremitted fund between 2005-2020 stood at N13.368 billion. No audited financial statements provided for 2000 – 2004 and 2021.
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“The remittances of NEPZA was both in Naira and US dollars as indicated in the attached schedule, we are however unable to identify the US dollars components as the values have been translated into Naira in the Audited Financial Statements (AFS). Furthermore, NEPZA needs to provide copies of treasury receipt validating their claims of remittances to the CRF. Out of NEPZA’s claims of over N2 billion remitted to the CRF, only N50 million could be validated at this time with copies of treasury receipts.
“The agency submitted documented claims to have been notified by the ‘Ministry of Finance’ to remit 25% of operating surplus to the CRF since 2011.
“However, content of the document stated in clear terms that the directive at that time was ‘temporary measure’ and further information in the said document does not totally match their assertions. The Agency is self-funded; therefore, we expect 80% of its operating surplus to be transferred to CRF as against the 257% transfers made to the CRF.
“Therefore, our computation of the amount remittance to CRF was based on the 80% operating surplus as per the audited financial statements submitted by the agency: Expired Advance Payment Guarantees (APGs) (2018 — 2021) N2.143 billion; this volume of money constitute idle fund left in the custody of the banks at the detriment of the Federal Government of Nigeria and inhibit her capacity to execute its projects.
“The Agency should provide information on expired APGs before 2018, if available. NEPZA to submit its Audited Financial Statements (AFS) from year 20002004 and that of 2021. Transaction Taxes: (VAT, WHT and Stamp Duties): While it is acknowledged that NEPZA made some submissions on transaction taxes, the information given was not extensive enough to draw useful conclusions.
“Therefore, NEPZA to provide up to date the following information on transaction taxes: Contract/Service, Invoice Sum paid, VAT, WHT and Stamp Duties deducted, remittances to FIRS with evidences, Outstanding/unremitted amount.
“Others: BVN – NEPZA to provide the list of its accounts with commercial banks pre and post BVN Policy and details of its accounts without BVN. Provide bank statements of such accounts from inception to march 31, 2022.”
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