Reps Probe CBN, NNPCL Over Unremitted N5.3tn Surplus; Query OAGF on MDA Fund Deductions

The House of Representatives Public Accounts Committee has intensified its investigation into the revenue remittance patterns of major government agencies, directing the Office of the Accountant-General of the Federation (OAGF) to submit comprehensive records of outstanding operating surpluses and other revenues owed to the federal government.

The primary entities under scrutiny include the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPCL), and several other government-owned enterprises (GOEs).

Additionally, lawmakers are demanding immediate explanations regarding allegations that the OAGF unilaterally withdrew billions of Naira from the statutory accounts of various Ministries, Departments, and Agencies (MDAs), potentially crippling their operational capabilities.

During an investigative hearing at the National Assembly, the committee expressed deep concern over the country’s weak revenue-to-GDP ratio, which currently hovers around 16 percent. Members of the committee emphasized that poor compliance with the Fiscal Responsibility Act continues to undermine national fiscal stability.

A representative from the OAGF’s revenue department disclosed that the CBN owes an estimated N5.3 trillion in unremitted operating surpluses accumulated since last year. Under current fiscal guidelines, the apex bank is required to remit 70 percent of this surplus to the Consolidated Revenue Fund. Despite previous recovery efforts by the legislative committee, the funds remain unpaid. In contrast, other agencies have demonstrated better compliance, with the Federal Airports Authority of Nigeria (FAAN) remitting N473 billion.

The committee has requested a thorough breakdown of the assets managed by these high-earning agencies to evaluate whether the surpluses they declare align with their actual financial capacities.

The hearing also addressed the OAGF’s controversial policy of executing automatic deductions from MDA accounts to recover anticipated operating surpluses in advance.

Accountant-General of the Federation, Shamseldeen Ogunjimi, defended the policy as an “ingenious” mechanism that significantly boosted federal revenue generation. However, he admitted the system has faced fierce pushback. Some agencies successfully appealed to the Presidency, resulting in the reduction or cancellation of their deductions, while the NNPCL reportedly resisted the framework, leading to ongoing reconciliations over disputed liabilities.

More concerning to the committee were petitions alleging that the OAGF had withdrawn statutory funds earmarked for essential public services. Committee Chairman Bamidele Salam highlighted several key discrepancies, noting that the Universal Basic Education Commission (UBEC) reported N15 billion and N16 billion were withdrawn from its account without being refunded. Furthermore, the National Agency for Science and Engineering Infrastructure (NASENI) raised similar complaints regarding over N70 billion in missing statutory allocations, alongside similar claims from the National Broadcasting Commission (NBC).

The Accountant-General explained that these withdrawals were temporary, interest-free “loans” authorized by the Ministry of Finance to cover urgent national funding shortfalls, promising that all utilized funds are systematically refunded once the affected agencies request them for approved projects. He cited a previous instance where over N300 billion belonging to the Tertiary Education Trust Fund (TETFund) was borrowed and fully refunded.

The Public Accounts Committee firmly rejected the OAGF’s defense. Lawmakers argued that diverting statutory funds from critical sectors, particularly basic education, carries severe social consequences.

“UBEC is expected to build schools, provide infrastructure, and supply instructional materials,” Salam noted, pointing to the estimated 13.5 million out-of-school children in the country. “It cannot effectively discharge those responsibilities if its statutory funds are diverted to other purposes.”

To resolve the dispute, the committee has directed the OAGF to provide complete ledgers of all outstanding operating surpluses owed by the CBN, NNPCL, and other GOEs, a detailed ledger of all automatic deductions made from MDA accounts, and verification documents detailing the exact amounts borrowed, the refunds already executed, and outstanding balances yet to be returned to the respective agencies.

The investigative hearing will continue as the legislature seeks to enforce compliance with the Fiscal Responsibility Act and recover billions in missing public revenues.