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Reps probe revenue losses on Remita app

 The House of Representatives yesterday asked its Committee on Public Account to investigate the non-remittance of revenue generated through Remita platform to government coffers.

This followed a motion on notice sponsored by Hon. Jeremiah Umaru and Hon. Jafaru Gambo on alleged revenue leakages through the Remita platform.

He also alleged non-compliance substantively with Standard Operating Procedures and other allied Service Level Agreements signed among Deposit Money Banks, Office of the Accountant-General, Systemspec, Nigeria Interbank Settlement System (NIBSS) and the Central Bank of Nigeria (CBN).

Presenting the motion, Hon. Umoru said the country was experiding a revenue issue and not that of expenditure.

He disclosed that Remita is a software cum financial service platform owned by System-Specs which is a private company in charge of managing government revenues, it has served as a gateway for the Treasury Single Account of the Federal government since 2012 though fully adopted in 2015 and used in the collection of Government Revenues over the years.

According to him, over N8.7 trillion had been processed through the platform before the deployment of the software, the Federal Government had over 15,000 bank accounts operated by Ministries, Departments and Agencies (MDAs), the proliferation of accounts has moved from deposit money banks to CBN allowing MDAs to create multiple sub-accounts thereby negating the TSA Policy of the Federal Government.

He said the TSA system has created a cashless economy, transparency and effective tracking of cash assets with attendant accountability. It has not indeed fully blocked leakages and abuses by the proliferation of CBN Sub-Accounts.

He alleged that one per cent of the funds collected is charged as commission for making use of the platform and shared among SystemSpecs (owner), Deposit Money Banks(processor) and Central Bank of Nigeria (License issuer) in the ratio of 50:40:10 respectively, saying this is alarming and unacceptable.

He said further that despite the benefits and reasons for on-boarding the Remita Platform, the rate of revenue leakages is worrisome apart from non-compliance substantively with Standard Operating Procedures and other allied Service Level Agreements signed by parties.

He argued that if this scenario continues unabated, the government will continue to experience a revenue shortfall and this will prevent the government from meeting the rising demand for good governance and infrastructural development from citizens.

He also alleged that a larger percentage of deposit money banks have formed the habit of delay in on-ward remittance or sweeping of revenues collected to Central Bank of Nigeria.