NGIJ Reveals How Unity Bank looted N300.5M In Nassarawa N3.6B IGR Scandal

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The attempt to stem the tide of revenue collection underpayment by banks operating in Nassarawa state has run into messy water, resulting in a petition to the nation’s anti-graft agency, the EFCC

For the 12 banks that had swarmed around Nasarawa revenue pie since 1999, the coming of former governor Tanko Al-Makura in 2015 changed the tide. Al-Makura who was worried stiff on the paltry internally revenue generation, despite the numbers of banks operating in the state, was bent on doing something about it.

This becomes paramount to the governor because Internally Generated Revenue (IGR) is a major earning that state governments generate within the areas of their jurisdiction. The various sources of internal revenue available to state governments includes taxes, fines and fees, licenses, earnings & sales, rent on government property, interests and dividends, among others.

Despite the numerous sources of revenue available to the various tiers of government as specified in the1999 Constitution of Nigeria, over 80% of the annual revenue of the three tiers of government still comes from oil earnings.

However, the serious decline in the price of oil in recent years has led to a decrease in the funds available for distribution to the states and triggers the need for state governments to generate adequate revenue from internal sources. This need has therefore underscored the eagerness on the part of many state governments to look for new sources or to become aggressive and innovative in the mode of collecting revenue from existing sources.

So, on the 29th December, 2016, Ori Adeyemo and Co, a Forensic Accounting Consultancy firm based in Lagos was engaged by the Nasarawa State Board of Internal Revenue to assist in the improvement of Internally-Generated-Revenue (IGR) base of excess bank charges, high network individuals, withholding tax on dividends and interest and deposits against banks operating in the State from 29/05/1999 and for an initial period of 4 years based on the firm’s proposal.

The firm immediately set its hands on the plough and in respect of excess bank charges and suppressed IGR recoveries, worked directly with the office of the Accountant-General of Nasarawa State. But for 10% Withholding Tax on Credit Interest and Dividend, High Network Individuals as well as PAYE back-duty recoveries, it dealt strictly with the Board.

In the course of executing the assignments, the obviously excited Nasarawa State Government expanded the job scope to include Pay-As-You-Earn (PAYE) back-duty assessment and IGR suppression (if any) by banks operating in the State sometimes in year 2017.

After the completion of said deducted but unremitted 10% Withholding Tax on Credit Interest monies by banks operating in Nasarawa State, it was established that a total final and conclusive liability against 12 banks stood at (N3.632 billion) N3, 632,677,464.41 broken down as follows: