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Nigeria Losing $30bn Annually From Revenue Leakages, Reps Alert
The Joint House of Representatives Committee on Finance, Banking and Currency has said that Nigeria lost about $30billion from 2005 to 2019 annually from revenue leakages.
The leakages were basically from activities of agencies and companies in banking, oil exploration, engineering, procurement, construction, installation, marine transportation, manufacturing and telecommunications.
According to the committee, the country has lost significant foreign exchange and revenue shortfall from the infractions.
Consequently, it grilled the management of two banks over several of the alleged infractions, accusing them of compromises.
The Chairman of House Committee on Finance and Co-Chairman of the Joint Committee, Hon James Faleke, in his remarks at the commencement of the investigative hearing on the allegations, said the House at its sitting on March 5, 2020, resolved to conduct an investigative hearing on revenue leakages in excess of $30billion.
He said, “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 $30billion 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.
“Lifting 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 (DPR) 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 per cent of profit for PSC and PSA companies, and 85 per cent 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.
“The committee shall extensively review all of the above infractions, among others, to ensure that all federally collectible revenues are not only identified and recovered, but also to sanction companies involved in the other non-civil infractions in order to serve as a deterrent to potential classmates of the affected companies.”
Interfacing with the representative of one of the two banks, Ngozi Omoke on the allegations, the committee accused the bank of not making remittances to the federation accounts from certain transactions.
It also picked holes in the presentation made by the representative of the second bank, Hassan Imam, saying there were many irregularities.
“Some of the infractions listed against the banks included outstanding withholding tax collectible on Form A: $2, 544, 973, 484; outstanding VAT collectible on Form A $1, 081, 383, 885; outstanding withholding tax collectible on known Form A bank transfers by customers $927, 556, 300; outstanding VAT collectible on known Form A bank transfers by customers from your bank is $463, 778, 150; breakdown of foreign exchange leakage infractions on Form A transactions filed with CBN as taxation services but not traced to the Federal Inland Revenue Service collection platforms $171, 256, 297 and foreign exchange inflow from capital importation yet to be accounted for in the foreign exchange sales voucher is a $17, 655, 410, 376.
“Others are Form A transfers for loan repayment and interest with no evidence of capital importation and payment of withholding tax on interest $210, 013, 266; Capital importation on loans with no evidence of principal repayment and interest payment $1, 072, 868, 110; Capital importation on equity with no evidence of dividend payment and capital repatriation is $1, 134, 835, 320; Dividend transfers in excess of capital importation on equity without payment of withholding tax is $3, 027, 298, 192; Form A transfers for dividend repatriations with no evidence of capital importation, either foreign equity and payment of withholding tax is $305, 725, 840.
“Also listed are foreign transfers for principal loan repayment and interest payment in excess of capital importation loan without payment of withholding tax on interest in $110, 635, 050; and foreign exchange on Form A transferred payment filed with the committee but not traced to CBN returns without payment of taxes is $510, 816, 573.”
Faleke further stated that the committee discovered that one of the banks had Form A transfer by customer through their bank accounts that were not filed with the CBN and committee, with no evidence of withholding tax amounting to $3,107, 398, 073.
The committee also disagreed with the bank’s position on advertisement, saying it was a taxable item.
Faleke, therefore, directed the bank to make available all the receipts of various transactions, and directed the clerk of the committee to write to the Federal Inland Revenue Services (FIRS), to appear before it to confirm the remittances.
Responding to the allegations, Mrs. Ngozi Omoke said the bank conducted its activities within the Foreign Exchange Monitoring and Miscellaneous Provision Act.
She said, “I will just say in a summary before I go to specifics. Our presentation is that we are guided by the Foreign Exchange Monitoring and Miscellaneous Provision Act and from time to time, the Central Bank of Nigeria as well as issues guidelines to regulate transactions on foreign exchange.
‘’It is in the light of this that we have reviewed all the allegations and the transactions mentioned in the report sent to us and we want to affirm again that we were not in any way in contravention of any of the guidelines in the Act or in the foreign exchange manual.”
“If you permit me, sir, I will just take the items one by one as read before. The first is outstanding withholding tax collectible on form A transaction. The total in this regard is $2,544, 973,484.04. We noticed that the committee or whoever computed this applied the total amount that was remitted and applied certain rate which is either 10 percent or 5 percent to arrive at the potential withholding tax or VAT.
‘’A lot of transactions that were documented or mentioned do not attract withholding tax or VAT. So, if I give some examples which you said here are not subject to VAT or withholding tax: Advertisement, airline remittances, principal loan repayments.
‘’What attracts withholding tax is interest on loan repayment not the principal itself; education, credit card, home remittances, BTA and so on. It should be noted that payments made on the basis of Form A by banks to customers are not payments for services rendered to the bank itself. I am glad that the chairman also mentioned it when he was speaking.
“So, withholding tax for the purposes of this amount that has been alleged here applies only to dividend remittances and interest on loan repayment or sometimes when there are consultancy on related transactions.
‘’Those are the only ones that attract withholding tax as guided by Foreign Exchange Miscellaneous Act and FX manual. So, in total, if I can speak to this amount, only $1.29billion and N357million were eligible for withholding tax and in those cases, they were duly deducted and remitted to appropriate authorities.”
Similarly, Imam, who is the Executive Director, North of the second bank, told the committee when confronted with the allegations that the bank only made transactions and would not be in a position to know what their customers did with their funds.
Rivers State Governor, Sir Siminalayi Fubara, yesterday extended interim relief measures to the people of Bille Kingdom as the government intensifies efforts to address the ongoing environmental degradation affecting the area.
This was contained in a statement by the Head of Information and Public Relations Unit, Office of the Secretary to the State Government, Juliana Masi, yesterday.
The governor, during a working visit to Bille Kingdom in Degema Local Government Area, reassured residents of his deep concern for their health and well-being.
He reiterated his administration’s commitment to finding a lasting solution to the persistent gas emissions observed in the community’s land and water sources since November 2025.
Represented by the Secretary to the State Government, Dagogo Wokoma, the governor announced immediate interventions to address urgent needs.
Some of the relief measures include the provision of potable water and essential medical services through the release of ?100 million as palliative support for the affected community.
According to the SSG, “Governor Fubara remains deeply committed to the welfare of the people of Bille Kingdom. Although unable to attend in person due to pressing state engagements, he is fully aware of the situation and determined to tackle the root cause of the environmental challenge”.
The governor assured residents that the state government would not relent in its efforts to provide a permanent solution to the gas emissions, emphasizing that the current intervention is only a temporary measure to ease the suffering of the people.
He further urged members of the community to remain law-abiding and continue supporting his administration, noting that he has consistently demonstrated a track record of fulfilling his promises.
Earlier, the Chairman, Council of Chief for Bille Kingdom, Chief Bennet Dokubo, expressed joy over the State visit, describing Fubara as a leader who listens to the plight of the people.
He urged the governor to critically look into the gas emission which he described as dangerous to human health.
“If we take you into the river, we notice that the entire environment is bubbling and smelling.
“We most humbly urge you to critically look into this situation. This is something strange we have never experienced before. It is not good for human health,” the monarch stressed.
The Federal Government has declared tomorrow (Friday) and Monday, April 6, 2026, as public holidays to mark this year’s Easter celebration.
Minister of Interior, Olubunmi Tunji-Ojo, made the declaration on behalf of the Federal Government through a statement signed by the Permanent Secretary in the ministry, Dr Magdalene Ajani.
The ministe congratulated all Christians in Nigeria and in the diaspora on the joyous occasion of Easter, and urged Nigerians to imbibe the virtues of selflessness, forgiveness, forbearance and love as exemplified by the life and teachings of Jesus Christ.
He reiterated that the goal of the government remains to make decisions that would bring about national rebirth, economic growth, and shared prosperity.
The Tide reports that good Friday will be marked tomorrow, while the Easter Sunday will be celebrated on Sunday across the world.
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG) and Chief of Staff (CoS) to carry out their duties with discipline, loyalty and a firm commitment to the success of the administration and the wellbeing of the people of Rivers State.
The governor warned that any involvement in unauthorised nocturnal meetings or any conduct capable of embarrassing the government will attract immediate dismissal.
Fubara gave the warning yesterday shortly after the newly appointed Secretary to the State Government (SSG), Dr Dagogo S.A. Wokoma and the new Chief of Staff (CoS), Barrister Sunny Ewule, were sworn in at the Executive Council Chambers of Government House, Port Harcourt.
As part of the ceremony, the Chief Registrar of the State High Court, David Ihua-Maduenyi administered the Oath of Allegiance and Oath of Office on the duo before the governor gave his charge.
Addressing the appointees, Fubara reminded them that their elevation to the new positions was a call to service and not a platform for political grandstanding or the pursuit of personal ambition.
He stressed that their foremost responsibility should be to themselves and to the people of Rivers State, stressing that their conduct must always reflect integrity, restraint and dedication to public good.
Speaking directly to Dr. Wokoma, whom he described as an accomplished academic and mathematician, the governor expressed confidence in his intellectual depth and capacity to deliver on the new assignment.
The office of the Secretary to the State Government, Fubara stressed, demands thoroughness, discipline and a deep sense of responsibility. He charged the SSG to represent the State with honour at all times.
“Your duty includes representing the state government. You need to represent us in a way and manner that will bring honour to us.
“What is important to this administration is to see that the good works that we started and the ones that we met, are concluded in a way that will bring progress and development to our dear state,” he stated.
Turning to the new Chief of Staff, the governor explained that he is expected to ensure smooth administrative coordination, managing official engagements effectively and safeguarding the image of the Government House.
He underscored the sensitive and personal nature of the role and emphasised that the position operates strictly under the authority of the governor.
Fubara stressed that the role does not permit independent political engagements or private strategy meetings without his knowledge and consent.
“Let me sound it here very clearly. Your duty is to make sure that you handle the administrative duties and image making roles perfectly well, liaising with whoever is coming for any official assignment here.
“If you involve yourself in nocturnal meetings and all those things, I will sack you. I’m very serious. What is important to me today is peace, progress and prosperity of this state. I’m not going to compromise anything for it,” he said.
The governor cautioned that involvement of the new appointees in any action capable of bringing the government or his office to disrepute would attract appropriate sanctions.
While congratulating the new appointees, Fubara expressed optimism that they would justify the confidence reposed in them.
He called on all public officials to work together in unity, observing that collective success is stronger and more enduring than individual achievement.
The governor who also addressed the Permanent Secretaries present at the ceremony, directed those of them who have reached retirement age to start preparing their handover notes without delay.
The notice, he said, was not intended to scare anybody but to prepare their minds towards the inevitability of exiting the service one day and to pave way for an orderly transition.
He warned against any attempt to engage in financial misconduct or last-minute irregularities, stressing that he was closely monitoring the system to ensure strict enforcement of accountability rules.