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Senate Investigate N20 Trillion That Has Not Been Remitted Into Federation Account By CBN

The Senate has begun probe into the non-remittance of over N20 trillion into the Federation Account by Central Bank of Nigeria, CBN, an amount collected as stamp duties from Banks and Financial Institutions in the country.

Consequently, the Upper Chamber yesterday mandated Senator Solomon Olamilekan Adeola led Senate Committee on Finance to carry out a holistic investigation into the matter Pulse NG reports.

Revolution of the Senate was the sequel to a motion entitled,  “The need to improve Internally Generated Revenue of the Federal Government of Nigeria through non-oil revenue” and sponsored by Senator Ayo Akinyelure, Peoples Democratic Party PDP, Ondo Central.

Presenting the motion, Senator Akinyelure explained 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.

According to him, 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.

“The 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.”

Speaking further, Senator Akinyelure who 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, said that the Special Presidential Investigation Panel on Recovery of Public Property (SPIP) and Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has adopted the combined resolutions of the House of Representatives and National Economic Council.

According to him, 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, adding, “The Senate must consider whether the target N20 trillion fund is being recycled into private banks (with impunity) when Federal Government had directed its recovery.

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