The Senate has mandated its Committee on Finance to investigate the non-remittance of over N20 trillion into the Federation Account by Central Bank of Nigeria, an amount collected as stamp duties from Banks and Financial Institutions in the country.
\nThe decision to probe the non-remittance of stamp duties was reached sequel to the consideration of a motion on \u201cThe need to improve Internally Generated Revenue of the Federal Government of Nigeria through non-oil revenue\u201d.
\nSponsor of the motion, Senator Ayo Akinyelure (PDP, Ondo Central), said that the Central Bank had in January 2016, issued a circular directing all banks and financial institutions to charge stamp duty of N50 on lodgments into current accounts against revenue projections by the Federal Government of N2.5 trillion annually.
\nHe noted that after the issuance of the said circular by the CBN, all deposit money banks and financial institutions effected N50 per eligible transaction in accordance with the provisions of the Stamp Duty Act 2004 and Federal government Financial Regulations 2009.
\nAccording to him, despite efforts by the Federal Government to recover over N20 trillion from Nigeria Inter-Bank Settlement Systems (NIBBS) to the Federation Account, \u201cthe Central Bank of Nigeria and NIBBS have technically refused to comply with the Presidential directives for the recovery of over N20 trillion revenue into the coffers of government.\u201d
\nAkinyelure added, \u201cThe CBN and NIBSS deliberately failed to cooperate and comply with the directives of Mr. President for the realization of over N20 trillion revenue due from stamp duties collected for 2013 to 2016 and subsequently over N5 trillion minimum revenue due to be collected annually to the Federation account to be shared among States of the Federation for infrastructural and economic development.\u201d
\nThe lawmaker lamented that since the implementation of the collection of stamp duties, \u201caccountability by banks has not been transparent and no report by CBN or its subsidiary (NIBSS) to the Nigerian public to know the actual revenue generated, collected and transferred to the Federation Account.\u201d
\nAkinyelure recalled that the House of Representatives and National Economic Council had in May 2019, waded into the matter and recommended all agencies to support the Federal Government recovery mandate on the over N20 trillion stamp duty.
\nHe stated that the Special Presidential Investigation Panel on Recovery of Public Property (SPIP) and Revenue Mobilization Allocation and Fiscal Commission (RMAFC) have adopted the combined resolutions of the House of Representatives and National Economic Council.
\nThe lawmaker lamented that before the Joint Task Force could swing into action to recover the unremitted amount, the CBN in August 2019 released a report that its borrowings to banks will hit N23 trillion by the end of this year.
\n\u201cThe Senate must consider whether the target N20 trillion fund is being recycled into private banks (with impunity) when Federal Government had directed its recovery.
\n\u201cSection 111 of the 1999 Constitution (as amended) has empowered all 36 State Attorney-Generals and Commissioners for Justice to shut-down any banking operation nationwide for \u2018summary recovery\u2019 of stamp duty revenue accruing to them by a further provision of Sections 163 of the same Constitution, and we should not fail in our collective role as Senators of the Federal Republic of Nigeria to stem the looming crisis for our various constituencies and the nation in general,\u201d Akinyelure said.
\nIn his concluding remarks, the President of the Senate, Ahmad Lawan, said, \u201cI engaged the Ministry of Finance and CBN for an interaction, and I discovered that what we have been expecting to be available as stamp duty is not so.
\n\u201cI was under the impression that we had over N20 trillion somewhere. It will interest you to know that we don\u2019t even have N1 trillion.
\n\u201cWhat has happened is because those that are supposed to collect the stamp duties were taking advantage of the non-electronic transaction.
\n\u201cWith the passage of the finance bill, this is an opportunity we have to start getting what ordinarily should go to the government.
\n\u201cThe banks and many private organizations have taken advantage of the way the stamp duties have been.
\n\u201cI want to believe that from January 2020, when the Finance Bill will start being effective, the stamp duty collection will be significantly improved.
\n\u201cIt is for our Finance Committee to monitor closely what the collection should be.
\n\u201cWe have also come up with another idea of engaging all the revenue generating agencies on a quarterly basis.
\n\u201cWe have got already a list of all of them from the Federal Ministry of Finance. We will put them into maybe four groups, and the first meeting for evaluation of their collection will be sometime in March.
\n\u201cWe would like to know in the first quarter how much they have collected, and if they have not met targets; if they have met targets, how do we do better than that? The idea is not to slow agencies to do whatever they want.\u201d
\nEzrel Tabiowo, Special Assistant (Press) to President of the Senate<\/p>\n","protected":false},"excerpt":{"rendered":"
The Senate has mandated its Committee on Finance to investigate the non-remittance of over N20 trillion into the Federation Account by Central Bank of Nigeria, an amount collected as stamp duties from Banks and Financial Institutions in the country. The decision to probe the non-remittance of stamp duties was reached sequel to the consideration of […]<\/p>\n","protected":false},"author":7,"featured_media":10543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7],"tags":[118,431,142],"class_list":["post-22992","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-news","tag-cbn","tag-n20-trillion","tag-senate"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/22992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22992"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/22992\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}