By Christiana Ekpa
The House of Representatives Joint Committee on Finance, Banking and Currency on Monday revealed that Nigeria lost about $30 billion from 2005 to 2019 annually from revenue leakages.
This is just as the Committee lambasted the management of Citibank and Fidelity bank over alleged infractions.
According to the Committee, leakages were basically from activities of agencies and companies in banking, oil exploration, engineering, procurement, construction, installation, marine transportations, manufacturing and telecommunications upon which the it’s [ noted significant foreign exchange and revenue shortfall infractions against the country.
The Chairman of House Committee on Finance and co-chairman of the joint Committee, Hon. James Faleke in his remarks at the investigative hearing on the allegations said the the House at its sitting on March 5, 2020, resolved to conduct an investigative hearing on revenue leakages in excess of $30 billion.
“The necessity and commencement of this investigation was as a result of growing problems in the financial management of all the God-given resources in our country, Nigeria, from our vast natural resources to the value added by these resources in the form of foreign exchange earnings and revenue generation etc. into these investment environment and opportunities.
“Thus, this Committee deemed it imperative to investigate revenue leakages and loopholes in the system, that have contributed to a loss of over $30 billion dollars in annual federation tax revenue between 2005 and 2019.
“The investigation therefore, was premised on the documents received from target agencies and companies in Banking, Oil Exploration, Engineering, Procurement, Construction, Installation, Marine Transportations, Manufacturing and Telecommunications upon which the Committee -noted significant foreign exchange and revenue shortfall infractions against the Federal Republic of Nigeria by these stakeholders.
“This places an imperative need to put an end to, or at best, minimise all attributable infractions that have been instruments in the hands of some stakeholders in bringing economic woes to this country and her people.
“During our documentation compilation and a further look at the economic woes caused the country by some companies, the Committee has noted the following major infractions which have multiplier effects on other infractions:
“Liftings of some crude oil and gas by oil exploration companies, that were not wholly and legally allocated to the Consignors in JV, PSC and PSA exploration activities including those whose crude oil Certificates of Quantity were not signed by the Department of Petroleum Resources and terminal operators.
“Concealment and non-disclosure of some crude oil liftings that ought to have been subjected to Petroleum Profit Taxation at PPT rates ranging between 50% of profit for PSC and PSA companies, and 85% of profit for JV companies.
“Inflow of foreign investments in the form of equity, foreign cash loans, equipment loans whose utilizations are majorly subject to tax, end up in transactions, foreign transfers that were at variance with the purpose of such inflows.
“Overnight and fictitious disappearance of Naira proceeds of foreign inflows from the bank accounts of Nigerian beneficiaries, and subsequent allocations of foreign exchange by CBN for Capital repatriations, Principal loan repayments and Interest payments.
Multiple foreign exchange allocations to holders of foreign inflow Certificates of Capital Importation (CCI) over and above the amount brought into the country, leading to capital flight of the country’s much needed and scarce foreign exchange.
“Loan backed Certificates of Capital Importations without evidence of transfer to the foreign lenders in the form of principal repayment and interest payments.
“Some expected imports that were funded by foreign equipment loans and other direct allocations of foreign exchange for foreign exchange valid transactions were neither translated to imports nor their import duties paid to the Nigerian Customs Service.
“Capital Flight using the FORM ‘M’ valid for Forex and Forex obtained by the beneficiary companies without utilization of the Forex to reflate the economy and taxes paid
“Export proceeds for both Oil and other commodities repatriation by exporters meant to reflate the economy which were diverted by selling directly to other customers without corresponding taxes paid.
