NGIJ EXPOSULATES EFCC TO INVESTIGATE NASARAWA INTERNALLY GENERATED REVENUE MANIPULATION|FLYCOMNEWS

The Nigerian Guild of Investigative Journalists (NGIJ) writes to draw the attention of your organisation, the EFCC, to the malfeasance/manipulation noticed in the collection and operation of the Nasarawa State Internally Generated Revenue, (IGR).

The Nigerian Guild of Investigative Journalists is an association of journalists “driven by the thirst for professionalism and agenda setting role of the media to make the government accountable to the governed.” We therefore wish to highlight the Nasarawa IGR manipulation as follows:

Our investigations have revealed that for the 12 banks that had swarmed around Nasarawa revenue collection pie since 1999, the coming of former governor Tanko Al-Makura in 2015 changed the tide.

We gathered that former Governor 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 source

The NGIJ gathered that on the 29th December, 2016, 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.

We learnt that 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.

We gathered that after the completion of the assignment, the deducted but unremitted 10% Withholding Tax on Credit Interest monies by banks operating in Nasarawa State, came to  a total final and conclusive liability against 12 banks stood at N3, 632,677,464.41 (Three Billion, Six Hundred and Thirty two Million, Six Hundred and seventy seven Thousand, Four Hundred and Sixty four naira, Forty one Kobo).

Shortly after completion of work, the Nasarawa State Government insisted that the firm should instead, deal with its own official facilitators and middlemen who allegedly entered a new deal with some of the banks to shortchange the whole exercise.

Our investigation revealed that some of the banks whose final liability was as high as N151 Million naira was billed N8 Million. Another with an initial bill of N443 Million was given a new bill of N7 Million and others like that.

This malfeasance, we gathered is being replicated in States like Niger, Ekiti and many of the States of the Federation.
It is the belief of the NGIJ that this act is a grand and deep conspiracy against the good people of Nigeria. We also believe this is the reason why there is under development in so many states as money that should have been used to develop these states are being diverted by some people.

For instance that we are also of the view that if Lagos and Oyo governors decided to investigate banks on their states on IGR collection, all the banks in Nigeria will almost collapse, because these banks have been milking the states.

This our call for investigation is a patriotic duty by the NIGJ to save the nation from this steeping rot that can collapse the present efforts of government to reshape the nation against the looming economic challenge of Covid 19.

The undersigned can be contacted for further clarification if the need arises.
The NGIJ is proud of your efforts at sanitizing our dear country and rid the nation of the evils of corruption and financial crimes, even as we look forward to your immediate action on this petition.