Game of Comparisons: Kano’s High VAT but Compared with Whose?
The Daily Trust recently published an exclusive report where it noted that Kano had more Value Added Tax (VAT) than the whole of South East. The report noted that Kano collected N24bn while the whole of South Eastern Nigeria accounted for N20bn.
Daily Trust’s report declared that Kano is faring better than all the southeastern states combined and further said the “revelation” is in light of the VAT row between the federal government and some states, and allegations that some states, majorly in the North, benefit more than what they contribute to the central pool.
The data is as true as it is exclusive, Kano State earned far higher in VAT income than all three southeastern states in the first eight months of the year.
But beyond the headline figures of VAT income, how do these states compare to Kano? [Read more]
Till Debts do us part: Parting with the Debt-Revenue fixation, Embracing the GDP-Income Nexus
Why is everyone concerned at the alarming revenue-debt ratio of Nigeria even when the debt-GDP ratio shows Nigeria is creditworthy and has the capacity to pay its debts.
While the debate on the boundaries of the GDP-Debt ratio belongs to policy economics, the focus on the government’s revenue as a safe measurement of general economic wellbeing can be traced to oil extractives being the major contributor to the revenue of all the tiers of government in Nigeria.
This situation makes many commentators on the country’s debt profile point to the revenue-debt ratio. This is because many believe the only money the government really has to pay back its accumulating debts is oil revenue. [Read more]
2019 Audit Report: Federal Government and its Agencies Fail to Comply with Regulations
According to Section 49 (1) of the FRA, 2007, “the Federal Government shall publish their audited accounts not later than six months following the end of the financial year”.
Paragraph 69 of the IPSAS 1 warned about the damage a delay in making available within 6 months the financial statements could cause.
Despite this, the Accountant-General of the Federation (AGF) submitted the Federal Government of Nigeria (FGN) 2019 Consolidated Financial Statements (CFS) for audit 10 months late.
According to the Auditor-General for the Federation, the CFS for the year ended 31st December 2019, was submitted to him for audit on May 25, 2021, which is late by 10 months.
Even with the late submission, the CFS was filled with financial errors which may be blamed on unaudited Trial Balance which was submitted to the Auditor-General, giving room for financial foul play and errors. [Read more]
2019 Audit Report: Where are the Recovered Monies? CBN Records Nil Recoveries in 3 years.
The 2019 audit report has revealed that the Central Bank of Nigeria recorded zero naira (nil) as recovered funds between 2016 and 2019.
The report revealed that no amount was stated by the apex bank as a recovered fund and the management of the bank confirmed with a response that there was no inflow between the period of January 2016 and December 2019.
This appears contradictory; in 2018 the Nigerian government was quoted as stating that $322 million stolen by the former military head of state, Sani Abacha was returned by Swiss Authorities. [Read more]