Reps okay recommendation mandating AcGF to deduct MDAs’ unremitted revenues

The house of representatives has approved a recommendation mandating the accountant-general of the federation (AcGF) to deduct unremitted revenues from the budgets of ministries, departments, and agencies (MDAs).

The AcGF will be mandated to transfer the funds to the proposed Nigeria Revenue Service (NRS).

The federal government announced the appointment of Shamsedeen Ogunjimi as the new accountant-general of the federation on March 5.

The approval was given during a plenary on Thursday, where the house considered and adopted a report from the committee on the tax reform bills.

James Faleke, chairman of the committee, moved a motion for the clause-by-clause consideration of the report.

In the report, the committee recommended the proposed amendment to a section of the NRS bill mandating the AGF to carry out the deduction.

“The Accountant-General of the federation shall, not later than 30 days of receiving a warrant endorsed by the executive chairman of the service and approved by a judicial officer in accordance with the Third Schedule to this Act, deduct unremitted revenue due from any ministry, department, agency of government from its annual budgetary allocation or such other money accruing to it, and shall remit the deductions to the Service,” the committee recommended,” the document reads.

The report was subsequently considered and the committee’s recommendations were approved.

‘NRS MAY BORROW BY WAY OF LOANS, OVERDRAFTS’

The committee also permitted the NRS to borrow funds “as necessary” for the execution of its functions.

“The committee also recommended that the service may borrow by way of loan, overdraft or otherwise from any source, such sums as it may require for the performance of its functions and meeting of its obligations under this Act,” the recommendation states.

However, it added that any borrowing must first be approved by the federal executive council (FEC) and the national assembly.

The committee also recommended that President Bola Tinubu appoint six executive directors for the NRS, with each representing one of the country’s six geopolitical zones.

According to the committee, the appointments will be made on a rotational basis among the states within each zone in alphabetical order.

 The panel added that no executive director and the executive chairman should come from the same state.

On October 3, 2024, Tinubu urged the national assembly to pass the tax reform bills — the Nigeria tax bill, the Tax administration bill, the joint revenue board establishment bill, and the NRS bill.