Government Revenue Lost in Commercial Banks, RMFAC Chair Reveals

In a recent revelation by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC), a substantial amount of government revenue remains trapped in the vaults of commercial banks, causing significant losses to the Nigerian economy.

According to the RMFAC chair, the abuse of procedure that results in loss of revenue, including evasion of payment of levies, duties, and other related revenue, has created room for a lot of funds to be trapped with the stakeholders, especially the commercial banks.

This alarming situation has led to calls for urgent action to address the issue and recover the trapped funds.

The RMFAC is a Federal Government agency responsible for mobilizing and allocating revenue to the three tiers of government in Nigeria.

The commission also monitors the financial activities of the federal, state, and local governments to ensure their compliance with the law.

The commission had recovered unremitted revenue totaling over N500 billion for the federation from some government-owned institutions.

However, the challenge of revenue leakage persists, and the RMFAC chair has expressed concern about the non-remittance of monies to the government coffers by revenue-generating agencies, leading to a large chunk of money being trapped in the banks.

In light of this, the RMFAC is set to take up the responsibility to fulfill its mandates in line with the subsisting presidential directive to block revenue leakages, irrespective of its source.

The commission is determined to work with the Nigerian Customs Service and other stakeholders to improve revenue mobilization and block revenue leakages, ensuring that every kobo and naira collected by the agency is remitted fully.

The situation of government revenue trapped in commercial banks is a matter of great concern, and it is crucial for the government to take decisive action to recover the funds and prevent further revenue leakages.

The RMFAC’s commitment to addressing this issue is a step in the right direction, and it is hoped that their efforts will lead to significant improvements in the management of government revenue in Nigeria.