Unrepentant Robbers: Documents Expose How National Pension Commission Failed To Remit N4.4 Billion in 2021

Secrets Reporters

A document in the possession of this online media has revealed significant lapses in the remittance of internally generated revenue (IGR) amounting to billions of Naira by the National Pension Commission (PenCom). 

Information buried in the recently released audit by the Nigerian auditor general, disclosed that the findings, covering the financial year January to December 2021, spotlight non-compliance with financial regulations and raise concerns over accountability in managing public funds.

According to the audit, PenCom generated a total of ₦19,718,201,546.33 (Nineteen billion, seven hundred and eighteen million, two hundred and one thousand, five hundred and forty-six naira, thirty-three kobo) from five revenue sources in 2021. However, the Commission failed to remit 25% of this amount, approximately ₦4,929,550,386.58 (Four billion, nine hundred and twenty-nine million, five hundred and fifty thousand, three hundred and eighty-six naira, fifty-eight kobo), to the Consolidated Revenue Fund (CRF), as mandated by financial regulations.

It was gathered that of the required remittance, only ₦500,000,000 (Five hundred million naira) was paid, leaving a staggering ₦4,429,550,386.58 unaccounted for. 

The report attributed these discrepancies to weaknesses in the Commission’s internal control systems, sparking fears of potential revenue loss, diversion of public funds, and difficulties in funding national budgets.

Legal and Regulatory Breaches

The non-remittance contravenes Paragraph 236 of the Financial Regulations, 2009, which mandates MDAs to transfer IGR to the CRF by the 15th of the month following collection. “Revenue paid into the Revenue Accounts for Internally Generated Revenue (IGR) of MDAs shall be transferred to the CRF before the 15th of the Month following the month of collection of the Revenue.” 

Also, the Treasury Circular Ref. No. TRY/A10&B10/2016 requires partially-funded government agencies to remit 25% of their gross revenue or 80% of their operating surplus, whichever is higher, to the CRF. “All partially-funded Federal Government Agencies/Parastatals should limit their annual budgetary expenditure to no more than 75 percent (75%) of their gross revenue, and remit the 25 percent (25%) to the CRF or pay 80 percent (80%) of their Operating Surplus computed according to the approved template to the CRF, whichever is higher.”

Audit Risks

According to the audit, the key risks identified include loss of revenue to the government which it believes undermines the government’s ability to fund essential projects.

It further suspected diversion of public funds, stressing that the absence of accountability mechanisms creates room for potential misuse.

In addition, the audit stated that failure to remit revenues hampers the government’s fiscal planning and execution.

National Pension Commission’ Silence

According to the audit, despite the severity of the findings, PenCom’s management did not respond to the audit observations, leaving the issues unresolved. The auditor emphasized that the findings remain valid and require immediate action to address the anomalies.

To ensure compliance and accountability, the audit report called on the Director-General of PenCom to explain the unremitted ₦4,429,550,386.58 to the Public Accounts Committees of the National Assembly.

It mandated PenCom to immediately transfer the outstanding amount to the CRF and to also submit proof of remittance to the National Assembly’s Public Accounts Committees.

The audit said in the absence of compliance, sanctions should be enforced as stipulated in Paragraphs 3112 and 3129 of the Financial Regulations, 2009, for gross misconduct and failure to account for government revenue.