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The federal government has proposed plans to require ministries, departments and agencies (MDAs) to pay gross generated revenues into the federation account or the Consolidated Revenue Fund (CRF).
This is contained in the 2021 finance bill sent to the National Assembly.
The bill, which passed second reading in the Senate on Wednesday, will become law after the National Assembly passes it and assented to it by President Muhammadu Buhari.
The bill concerns the collection of taxes in fiscal year 2022.
According to the bill, any public officer who violates the requirement may be liable, on conviction, to imprisonment for up to five years or a fine of 5 million naira or both.
The bill amended article 4 of the finance law (control and management). He clarified that all taxes, duties, revenues or other funds collected or received by the Federation, the Federal Government of Nigeria or any agency of the Federal Government of Nigeria must be paid in gross to the account of the Federation, the Consolidated Fund of Nigeria. income, or a special purpose account as provided for by the constitution of the Federal Republic of Nigeria or the enabling act of the National Assembly.
“Any person, as an agent of a federal ministry, department or agency or government institution to which this section refers, who fails to pay or authorize the payment of a part of taxes, fees and other income collected on behalf of the Federation, Federal Government of Nigeria or any ministry, department, agency or institution of the Federal Government of Nigeria to any person before the balance is paid into
of the Federation Account or of the Treasury, as the case may be, unless authorized by the National Assembly or the Minister responsible for Finance, commits an offense and is liable, on conviction, to imprisonment for a maximum of 5 years or to a fine of [five million naira] [N5,000,000] or at the same time to such a term of imprisonment and to a fine â€, indicates the bill.
The budget bill also proposed amending the Fiscal Responsibility Act to allow the government to borrow for “critical reforms of significant national impact.”
The Fiscal Responsibility Committee (FRC) has repeatedly frowned on how MDAs fall short and virtually keep money away within the reach of the federal government.
In May, the commission said 32 MDA had not remitted more than 1.2 trillion naira to the Consolidated Revenue Fund (CRF). The Senate had also set the figures to on N3 trillion between 2014 and 2020.
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