The House of Representatives has approved a recommendation compelling the Accountant-General of the Federation (AcGF) to deduct unremitted revenues from the budgets of Ministries, Departments, and Agencies (MDAs).
The deducted funds will be transferred to the proposed Nigeria Revenue Service (NRS), a new tax agency being set up as part of the federal government’s fiscal reforms.
The decision was reached during a plenary session on Thursday, where lawmakers considered and adopted the report of the Committee on Tax Reform Bills.
The approval comes shortly after the federal government appointed Shamsedeen Ogunjimi as the new Accountant-General of the Federation on March 5.
Presenting the report, Chairman of the Committee, Hon James Faleke, moved a motion for a clause-by-clause consideration, which was subsequently approved.
According to the committee’s recommendations, the Accountant-General will be required to deduct outstanding revenues from MDAs within 30 days of receiving an endorsed warrant from the Executive Chairman of the NRS.
The warrant must be approved by a judicial officer, in line with provisions in the Third Schedule of the NRS Act.
Additionally, the House approved a provision allowing the NRS to secure funding through loans, overdrafts, or other financial instruments to facilitate its operations.
However, any borrowing must first receive approval from the Federal Executive Council (FEC) and the National Assembly.
The committee further recommended that President Bola Tinubu appoint six executive directors for the NRS, with each representing one of the country’s six geopolitical zones.
The appointments will follow a rotational arrangement among the states in alphabetical order.
To prevent regional dominance, the committee stipulated that no executive director and the Executive Chairman should hail from the same state.
On October 3, 2024, President Tinubu urged the National Assembly to pass key tax reform bills, including the Nigeria Tax Bill, the Tax Administration Bill, the Joint Revenue Board Establishment Bill, and the Nigeria Revenue Service (NRS) Bill.
The passage of these bills is expected to enhance revenue generation, improve tax administration, and strengthen fiscal discipline across government agencies.
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