House Committee Recovers Substantial VAT from Central Bank of Nigeria
The House Committee on Public Accounts (PAC) has successfully recovered ₦521,765,134.17 in unpaid Value Added Tax (VAT) from the Central Bank of Nigeria (CBN). This recovery emerged from an ongoing investigation into discrepancies identified in transactions processed through the Remita platform.
This action is part of a wider inquiry into potential revenue leaks and non-compliance with established financial protocols for government collections and remittances. The investigation was prompted by a resolution from the House of Representatives, aimed at examining revenue leakage and significant deviations from Standard Operating Procedures as well as related Service Level Agreements associated with the Remita platform.
Following this directive, the PAC, under the leadership of Rep. Bamidele Salam, has been proactively examining remittances linked to the Remita payment platform. Their goal is to pinpoint deficiencies in revenue collection, ensure regulatory compliance, and enhance accountability within public financial management.
According to the Commission’s findings, the CBN had failed to remit ₦21,765,134.17 in VAT, representing the tax on fees accrued from Remita transactions spanning from November 2018 to April 2024. Upon identifying this shortfall, the committee directed the apex bank to transfer the outstanding amount to the Union Treasury and provide proof of compliance.
On May 7, 2026, the Central Bank confirmed compliance with the directive, asserting that it had transferred the full amount to government accounts. This recovery marks a significant milestone in the ongoing efforts to address revenue leakages associated with government payment systems and electronic collections.
Commenting on this significant recovery, Salam emphasized the critical role of parliamentary oversight in safeguarding public resources and promoting transparency in government financial practices. He reaffirmed the committee’s commitment to pursuing all outstanding debts owed to the federal government and closing any gaps that impede effective revenue collection.
The Commission also highlighted that discussions with the CBN continue regarding additional liabilities discovered during the investigation. These inquiries have revealed unpaid fees totaling ₦954.3 million and unpaid interest amounting to ₦2.33 billion, culminating in a total recoverable sum of approximately ₦3.28 billion for the period from March 1, 2015, to October 31, 2015.
Furthermore, the committee is actively working to recover unpaid Treasury Single Accounts (TSA) valued at £8.99 billion, which includes an estimated £20.73 billion in unpaid interest, bringing the total outstanding debt in this category to approximately £29.72 billion. Ongoing settlement efforts suggest the potential for further recoveries as the investigation unfolds.
This latest development coincides with intensified congressional oversight of revenue-generating institutions as part of broader initiatives aimed at enhancing fiscal accountability, minimizing financial leakages, and boosting government revenue. Analysts note that such recoveries are crucial given the country’s fiscal challenges and the pressing need to maximize available resources for infrastructure, social services, and economic development.
The Committee is set to continue its public hearing on the matter on June 8, 2026, at the State House in Abuja, where further submissions and adjustments regarding the outstanding debt will be evaluated.
