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FAAC to recover N101bn from Customs after audit report
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A financial audit firm, OOM Professional Services, has flagged discrepancies totalling about N101.17bn in revenue remittances by the Nigeria Customs Service, prompting the Federation Account Allocation Committee to demand a full recovery and redistribution of the funds to the appropriate beneficiaries.
According to a FAAC Post Mortem Sub-Committee document obtained on Monday by our correspondent from a FAAC official involved in the ongoing revenue reconciliation meetings, the misclassification of funds and delayed remittances by commercial banks significantly distorted the statutory revenue sharing formula and short-changed sub-national governments.
The firm, which commenced operations in 2008 as Lanre Ogunwale & Co before rebranding as OOM Professional Services, was engaged by the Forum of Commissioners of Finance to conduct a detailed review of Customs remittances into the Federation Account for the 2022–2023 fiscal period.
The engagement culminated in the presentation of a report at the FAAC plenary session of 16th May, 2025, where the Chairman of the Forum informed members of the anomalies uncovered by the consultant.
Following deliberations, the Federal Ministry of Finance directed the FAAC Post Mortem Sub-Committee to verify and report with recommendations.
A follow-up stakeholders’ meeting was held on July 10, 2025, at Brick Wall Hotel, Asokoro, Abuja, attended by representatives of the Nigeria Customs Service, the Federal Inland Revenue Service, the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, and the FAAC Secretariat.
The consultant re-presented its findings, which were unanimously agreed upon by the relevant agencies. “The FIRS and NCS representatives were in agreement with the position of the consultant. It was established that the findings of the consultant contained in the report were accurate,” the document noted.
One of the most critical errors identified in the report was the wrongful classification of N82,04bn (N82,037,823,474.76) as Import Duty instead of Import VAT. The funds were posted into the Federation Account instead of the VAT Pool Account by four commercial banks – Guaranty Trust Bank, Globus Bank, Taj Bank, and Nova Merchant Bank.
“The sum of N82,037,823,474.76 being Import VAT was wrongly posted into the Federation Account as Import Duty instead of the VAT Pool Account by four commercial banks, namely Guaranty Trust Bank, Globus Bank, Nova Merchant Bank, and Taj Bank,” the document stated.
Unlike VAT, which is shared under a separate formula that prioritises state and local governments, Import Duty is shared vertically, disproportionately favouring the Federal Government. The consequence, according to the committee, was a significant reduction in the share due to sub-national governments.
“The remittance of Import VAT into the Federation Account as Import Levy has significantly reduced the share of the sub-nationals due to the application of the vertical revenue sharing formula rather than the VAT Sharing formula,” the document noted.
In addition to the VAT misclassification, the report revealed that another N19.13bn (N19,130,495,656.89) was erroneously remitted to the Consolidated Revenue Fund of the Federal Government, instead of the Federation Account. Of the N22.05bn (N22,047,725,350.91) originally thought to belong to the CRF, only N2.92bn was actually due there.
“The NCS has confirmed that the sum of N19,130,495,656.89 was Federation Account revenue comprising Import Duty, Fees, Excise, and CET. While only N2,917,229,704.49, comprising CISS, ETLS, Iron Levy, Port Levy, and Wheat Grain Levy, was CRF revenue,” the document disclosed.
With the two misclassified sums combined, the total amount of funds wrongly posted stood at N101.17bn (N101,168,319,131.64). “The amounts posted in error were N82,037,823,474.76 as Import Duty and N19,130,495,656.89 to CRF, which totalled N101,168,319,131.64,” the committee noted.
The sub-committee further observed that these errors affected not only revenue sharing among government tiers but also the statutory cost of collection paid to agencies such as the FIRS, NCS, and the North-East Development Commission.
“The Cost of Collection and grant to FIRS/Nigeria Customs Service and North-East Development Commission be recomputed,” the committee recommended.
Beyond classification discrepancies, the sub-committee highlighted delays by commercial banks in remitting funds collected on behalf of the Nigeria Customs Service. These delays, which in some instances extended into months, violated financial regulations and contributed to cash flow uncertainty at the sub-national level.
“Revenues collected by NCS through Commercial Banks were delayed for weeks and in some instances months before being remitted into the Federation Account, which is in breach of lawful provisions,” the committee stated.
In response to the findings, the sub-committee made sweeping recommendations, starting with the immediate recovery and redistribution of the N82.03bn misclassified as Import Duty.
“That the sharing of the sum of N82,037,823,474.76 Import VAT, which was erroneously classified as Import Duty and wrongly remitted to the Federation Account, be recovered and re-computed using the VAT sharing formula for possible net-off,” the document recommended.
It also called for the recovery of the N19.13bn wrongly paid into the Consolidated Revenue Fund and its subsequent distribution to eligible beneficiaries using the vertical sharing formula.
“The N19,130,495,656.89 erroneously remitted to the Consolidated Revenue Fund of the FGN should be recovered from Federation Account inflows and distributed to the beneficiaries using the vertical formula,” the report added.
The committee tasked the Office of the Accountant-General of the Federation with the responsibility of recalculating and disbursing the corrected revenue allocations to the appropriate beneficiaries.
“The OAGF should work out the appropriate percentages due to the beneficiaries,” the committee directed. The report also stressed the need for fairness and accountability, particularly as the affected funds were shared using a formula that penalised sub-national governments.
“This is to ensure fairness to the Sub-Nationals who were underpaid using the Federation Account sharing formula rather than the VAT Sharing formula,” it noted. The committee concluded by recommending the payment of the consultant’s fees, acknowledging the critical role played in exposing the remittance discrepancies.
The document ended with a strong appeal to the Accountant-General to act swiftly. The PUNCH further learnt that the Nigeria Customs Service remitted a total inflow of N359.42bn to the Federation Account in May 2025, representing 16.56 per cent of the total revenue generated by all revenue-collecting agencies for the month.
The total contributions by revenue-generating agencies for the month stood at N2.17tn, with the Federal Inland Revenue Service leading with N1.14tn, or 52.73 per cent, followed by the Nigerian Upstream Petroleum Regulatory Commission/Ministry of Petroleum Resources (NUPRC/MPR), which contributed N615.13bn or 28.33 per cent.
When contacted, the spokesperson of the NCS, Abdullahi Maiwada, said he was not aware of the matter and declined to comment on it.
Credit: PUNCH
News
Don’t Reject State Police Over Fear of Abuse – Kalu Tells Nigerians
By Gloria Ikibah
Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Kalu, has defended the proposed State Police Bill, insisting that concerns over possible abuse by state governors should not stand in the way of a reform he believes will significantly strengthen security across the country.
Speaking with journalists in Abuja on Friday after returning from a week-long engagement at Chatham House and the London Climate Action Week in the United Kingdom, Kalu said the constitutional amendment was carefully drafted with safeguards to prevent the misuse of state policing.
According to him, while fears surrounding political interference are understandable, the benefits of decentralising policing far outweigh the risks.
He said: “The fear of a minor percentage of risk should not stop Nigerians from enjoying the major percentage of benefits that is found in that bill.
“Let me ask this question: How many governors have used state high courts to jail opposition members? What is the statistics out there?
“Yes, the fear is there; it is a legitimate fear. But what is more legitimate is that Nigerians should embrace the benefits of state police.
“Because of those concerns, while drafting this document, we ensured that there are clear guardrails defining the powers, duties and operational limits of state police.”
Kalu explained that the proposed amendment will move policing to the Concurrent Legislative List while establishing national standards that every state police service would be required to follow.
He also noted that the legislation expressly bars state police from being used for partisan political purposes or political conflicts.
The Deputy Speaker disclosed that once the constitutional amendment is approved, it will be followed by a comprehensive review of the Police Act to provide the legal framework needed to operationalise state police.
“It is a beautiful piece of legislation that we have put together.
“There is going to be a consequential repeal and reenactment of the Police Act because it is going to be the implementation Act of the constitutional amendment we are making now.
“This means the President will champion the repeal and reenactment of the Police Act, and it is in that Act that many of the operational details Nigerians are currently concerned about will be adequately addressed”, he said.
Reflecting on his engagements at Chatham House, Kalu said the visit offered Nigeria an opportunity to present its democratic reforms and constitutional changes to key international stakeholders ahead of the 2027 general elections.
He stressed that Nigeria cannot afford to ignore global opinion, noting that international perceptions often shape diplomatic relations, investment decisions and economic partnerships.
According to him, discussions at Chatham House centred on Nigeria’s preparations for the 2027 elections and reforms designed to improve the credibility and transparency of the electoral process.
“Nigeria is in the comity of nations; we are not an isolated nation.
“One thing with global politics is that perception is everything. If you don’t communicate and frame your narratives properly, others will frame the narratives for you.”
“Elections are coming, international observers will be here, documents will be flying around. We need to let the world know the level of our preparation and the innovations we have introduced into the Electoral Act to enhance credibility”, he added.
Kalu said he also highlighted the significance of Section 60(3) of the Electoral Act, which makes the electronic transmission of election results the default legal position.
He further disclosed that the National Assembly is pursuing constitutional reforms to ensure that funding for the country’s defence sector is placed on the First Line Charge, guaranteeing timely and uninterrupted financing.
Describing international engagements as essential, Kalu said they help ensure Nigeria’s democratic progress is presented in its proper context.
“We informed them that we are pushing to ensure that financing for the defence sector occupies the First Line Charge so that funding will not be delayed or subjected to interference.
“It is important to have these conversations with international bodies so that the framing of discussions around what Nigeria is doing will be in the proper perspective”, he stated.
Speaking on his participation at the London Climate Action Week, the Deputy Speaker said he used the platform to attract global investors to Nigeria’s climate adaptation, mitigation and energy transition programmes.
“I was there wooing investors from around the world to come and participate in Nigeria’s climate adaptation and mitigation efforts.
“I also showcased our roadmap for the green economy, particularly the reforms being driven under the Ministry of Solid Minerals.
“I saw significant interest, especially regarding energy transition. Our allies, particularly the United Kingdom, expressed strong interest in what Nigeria is doing, and I am confident that we will begin to harvest the outcomes of those engagements in the coming days”, he said.
Kalu also urged Nigerians, particularly young people, to become ambassadors for the country by promoting balanced narratives that acknowledge challenges while celebrating progress.
He said that the London trip was funded personally by himself and members of his team, saying patriotism should not always depend on government sponsorship.
He warned against using social media to paint an entirely negative picture of Nigeria, arguing that online narratives have lasting consequences for the country’s international image.
“This trip was not sponsored by government. I sponsored it together with some members of my team because we believed it was time to project Nigeria positively to the world.
“It is not always about what government can do for you; it is also about what you can do for your country.
“We do not have any other country but this. If we destroy its image, we become strangers wherever we go.
“We know we have challenges, and we should criticise constructively, but we must also tell the positive stories. Leadership will come and go, but you will remain a Nigerian for life.
“When I spoke at Chatham House, I made it clear that we did not come to say Nigeria has arrived. We are only 27 years into our democracy, while many countries we are compared with have over 200 years of democratic experience.
“If we are patient and continue building our institutions, we will get it right. Let us keep Nigeria first in the way we project our country to the world because the narratives we create are being leveraged internationally to define who we are”, Kalu said.
News
SEDC, Enugu Seal Landmark Agro Partnership to Drive Investment, Jobs Across South-East
By Gloria Ikibah
The South East Development Commission (SEDC) and the Enugu State Government have signed a Memorandum of Understanding (MoU) to launch the South East Agro Development Programme, marking the Commission’s first state-level implementation partnership aimed at transforming agriculture into a major engine of economic growth across the region.
The agreement, signed in Enugu on Thursday, after about nine months of technical planning, stakeholder consultations, field assessments and collaboration between both parties.
The initiative is expected to boost agricultural productivity, attract private investment, strengthen food security and stimulate inclusive economic development throughout the South-East.
The signing ceremony brought together senior officials of the Enugu State Government and the Commission, including the Executive Director, Projects, SEDC, Hon. Toby Okechukwu; Executive Director, Natural Resources, Agriculture and Rural Development, Dr Cliff Ogbede; Secretary to the Enugu State Government, Prof. Chidiebere Onyia; Attorney-General and Commissioner for Justice, Osinachi Nnajieze; Head of Legal Services at SEDC, Barr. Nnanna Oketa, as well as traditional rulers, development partners, financial institutions, private sector representatives, community leaders and members of the media.
The Managing Director and Chief Executive Officer of SEDC, Mark Okoye, was represented by Hon. Toby Okechukwu, he described the agreement as a major step in translating the Commission’s regional development vision into practical action.
According to him, the success of the programme will not be measured by the signing ceremony itself but by the tangible benefits it delivers to communities.
He said: “The true measure of our success will not be today’s signatures, photographs, or announcements. The true measure will be what follows after today: the land prepared, the investments attracted, the jobs created, the communities empowered, and the impact felt by ordinary people.”
Speaking on behalf of the Enugu State Government, the Secretary to the State Government, Prof. Chidiebere Onyia, said the partnership reinforces the state’s commitment to making agriculture a commercially viable sector capable of creating jobs and attracting large-scale investment.
He said that the programme aligns with Governor Peter Mbah’s economic agenda, which prioritises private sector-led growth, economic diversification and inclusive development.
Onyia also reaffirmed the state’s readiness to provide the policy, institutional and regulatory support needed for the successful implementation of the initiative while ensuring host communities benefit directly from the programme.
The South East Agro Development Programme is designed to unlock dormant agricultural assets across the region and position agriculture as a catalyst for industrialisation and long-term economic transformation.
Rather than focusing solely on farming, the initiative seeks to establish an enabling environment for commercial agriculture by facilitating land development, strengthening agricultural value chains, integrating host communities, promoting environmentally sustainable practices and attracting private sector investment.
The programme is built on extensive technical studies jointly undertaken by the Commission, through its Department of Natural Resources, Agriculture and Rural Development, and the Enugu State Ministry of Agriculture. The exercise included land mapping, physical verification and suitability assessments to ensure that implementation is guided by technical evidence and investment readiness.
Recognising that sustainable agricultural development requires broad collaboration, the initiative also brings together development partners, financial institutions, research institutes, universities, Colleges of Agriculture, host communities and private investors.
Financial institutions, including the Bank of Industry, are expected to help create financing mechanisms that will improve access to capital for qualified investors and project developers.
Youth empowerment forms a key pillar of the programme, with plans to expand opportunities in farming, food processing, logistics, aggregation and agricultural support services. The initiative is expected to generate employment while strengthening the productive capacity of the South-East.
The Commission said the programme would be implemented as a regional project, with Enugu becoming the first participating state.
Following the signing of the Enugu agreement, SEDC disclosed that it would move to conclude a similar partnership with the Abia State Government, while technical mapping activities are already underway in Ebonyi State.
The Commission plans to extend the programme across all five South-East states to create an integrated agro-industrial ecosystem capable of boosting productivity, expanding regional trade and driving shared prosperity.
Established under the South East Development Commission Act, 2024, the SEDC is mandated to spearhead the reconstruction, rehabilitation, integration and sustainable economic development of the region.
The South East Agro Development Programme is one of its flagship initiatives aimed at unlocking the region’s agricultural potential through strategic partnerships, coordinated planning and increased private sector participation.
Both the Commission and the Enugu State Government reaffirmed their commitment to implementing the programme through collaboration, transparency, community participation and measurable outcomes, expressing confidence that the partnership would serve as a blueprint for similar initiatives across the South-East.
News
Sad! Venezuela Quake Death Toll More Than Doubles To 589, Over 50,000 Still Missing
More than 50,000 people were missing Friday after twin earthquakes in Venezuela, the United Nations’ aid chief told AFP as international rescue teams and sniffer dogs arrived to join a desperate search for survivors.
Interim president Delcy Rodriguez said the death toll was now at 589, a number that is likely to “rise significantly,” according to UN aid chief Tom Fletcher.
“We’ve got over 50,000 people missing, over 500 people dead, so a massive job to go through the rubble,” he told AFP.
Rescuers used heavy machinery, but also their bare hands, in a race to claw out people caught under rubble in the worst-hit earthquake zone, north of the capital Caracas.
At one of the flattened buildings, AFP saw workers using sledgehammers to break the debris and calling for “absolute silence” to detect cries from survivors.
Oil-rich Venezuela is facing its worst natural disaster in more than a century after more than a decade of economic collapse hollowed out hospitals and public services, driving millions to leave the country.
The country is still in a fragile transition six months after the United States ousted leader Nicolas Maduro.
Rescue efforts have been slow with desperate calls for more heavy machinery as families stand by helpless to pull out loved ones they could hear alive in the rubble.
“It is a lot of rock, and with bare hands it is impossible,” said Amparo del Giudice, scrabbling through rubble in search of her son.
Two earthquakes, measured at magnitudes 7.2 and 7.5, hit northern Venezuela within less than a minute of each other on Wednesday night, sending hundreds of buildings tumbling.
Elsewhere in La Guaira, three people could be heard in the rubble of a collapsed building.
“They’re still alive… There’s nothing more we can do,” said one resident, Antonio Bermudez. “We don’t have any tools. We have no way to help.”
A doctor at the Domingo Luciani Hospital in the city, speaking on condition of anonymity, said children were arriving in ambulances alone after being pulled out of the rubble.
“Some children provide their names, while others arrive with identification tape on their arms,” he said.
Help Arrives
A man searches through the rubble of a collapsed building as he tries to recover belongings following an earthquake in Catia La Mar, La Guaira state, about 30 km northwest of Caracas, on June 25, 2026.
National Assembly President Jorge Rodriguez said Thursday that more than 200 people were confirmed trapped alive.
The UN humanitarian agency OCHA said search and rescue teams from at least 17 countries were being mobilized to help find survivors.
Spanish, Salvadoran, Swiss, Colombian, and Mexican rescue teams were already on the ground.
A senior US military official landed in Caracas to oversee Washington’s relief efforts.
The United States said it was deploying two warships, transport planes and helicopters and mobilizing $150 million in aid. Washington has also suspended economic sanctions on Venezuela that could have hindered rescue operations for four months.
“Even before the earthquakes, millions of people across Venezuela were facing food insecurity, collapsing health services, protection risks, and limited access to basic services,” the UN and other aid agencies said in a statement Friday.
“We have a whole-of-government response. It’ll be big, it’ll be fast, and it’ll be effective,” said US Secretary of State Marco Rubio.
Washington is closely involved in oil-rich Venezuela after US forces ousted and arrested president Nicolas Maduro in January.
China, India, Brazil and even war-battered Iran offered help, while Pope Leo XIV has sent an initial 100,000 euros in aid to the country.
UN chief Antonio Guterres said he was “deeply saddened” by the disaster as the global body vowed to assist Venezuela.
The strongest quake to hit Venezuela in 126 years will require “massive collective efforts,” UN aid chief Tom Fletcher said in a statement.
Threatening to complicate relief efforts, the international airport is in La Guaira and has been closed after suffering serious damage.
Two Brazilians, two Chinese, an Italian and a Portuguese citizen were among the dead, authorities in those countries said.
Tremors felt in Colombia, Brazil
Venezuela’s northern coast sits on a boundary between the Caribbean and South American tectonic plates, but has not experienced a significant quake since 1997, when 73 people died. Another quake in 1967 killed 236 people.
Wednesday’s 7.5-magnitude earthquake was the most powerful since October 29, 1900, when a 7.7-magnitude tremor struck offshore.
The quake was felt in neighboring Colombia, where residents in Bogota evacuated buildings as a precaution.
Tremors were also reported in several cities in northern Brazil, according to the country’s seismic monitoring network.
Scenes of panic and destruction also played out in the Venezuelan capital Caracas, where many spent the night sleeping on the streets or in their cars.
Rita Gomez, 60, travelled to the capital after seeing on social media that the building her daughter lives in had collapsed and that she was not answering her phone.
She told AFP that heavy machinery had arrived and there was “a lot of cooperation from the neighbors. We are trusting in God that they will find her alive.”
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