Reps recover N521m VAT from CBN

The House of Representatives Public Accounts Committee (PAC) has recovered N521.77 million in unremitted Value Added Tax (VAT) from the Central Bank of Nigeria (CBN) as part of an ongoing investigation into revenue leakages associated with transactions processed through the Remita payment platform. The recovery marks a significant development in the National Assembly’s efforts to strengthen accountability in public finance management and ensure that all revenues due to the Federal Government are properly remitted.

The committee disclosed that the recovered amount represented VAT deductions on fees earned from Remita transactions between November 2018 and April 2024 that were not remitted to government coffers. The discovery emerged from a broader investigation launched by the House of Representatives following concerns over alleged revenue leakages, non-compliance with established financial procedures and breaches of service-level agreements governing government revenue collections.

The probe was initiated pursuant to a resolution of the House of Representatives based on a motion calling for an investigation into revenue leakages through the Remita platform and alleged violations of standard operating procedures. Following the adoption of the motion, the Public Accounts Committee was mandated to examine transactions linked to the platform, identify outstanding liabilities and recover all funds due to the Federal Government.

Chaired by lawmaker Bamidele Salam, the committee conducted an extensive review of remittances, deductions and collections associated with government transactions processed through Remita. According to findings presented by the committee, the apex bank failed to remit VAT amounting to N521,765,134.17, representing tax components on fees generated from transactions handled through the platform during the review period.

Following the discovery, lawmakers directed the Central Bank of Nigeria to remit the outstanding VAT liability into the Federal Government Treasury and provide evidence of compliance. The committee subsequently received confirmation that the directive had been implemented. In a letter dated May 7, 2026, the CBN informed the committee that it had paid the outstanding amount and submitted documentary evidence showing that the funds had been remitted into government accounts.

The committee described the recovery as evidence of the effectiveness of legislative oversight in safeguarding public resources and strengthening accountability within government institutions. Salam noted that the exercise demonstrates the importance of continuous scrutiny of public financial transactions to ensure that all revenues due to the Federation are collected and properly accounted for.

While welcoming the recovery, the committee indicated that its engagement with the apex bank remains ongoing. Lawmakers revealed that additional outstanding liabilities are still under review, including disputed charges and other recoverable sums linked to transactions processed through the Treasury Single Account framework.

According to the committee, one category of outstanding claims relates to unrefunded charges amounting to approximately N954.3 million, alongside accrued interest estimated at N2.33 billion. Combined, these claims amount to about N3.28 billion covering transactions conducted between March and October 2015. The committee is also pursuing the recovery of unrefunded Treasury Single Account collections valued at N8.99 billion, with accrued interest estimated at N20.73 billion, bringing the total outstanding liability in that category to nearly N29.72 billion.

The ongoing investigation forms part of broader efforts by the National Assembly to plug revenue leakages and improve transparency in the management of public funds. Revenue collection systems, including the Treasury Single Account and digital payment platforms such as Remita, have become increasingly important to government financial administration. However, lawmakers maintain that effective oversight is necessary to ensure compliance with financial regulations and prevent losses to the public treasury.

Financial analysts say the recovery highlights the growing role of legislative oversight in strengthening fiscal discipline within public institutions. According to experts, regular audits and investigations can help identify compliance gaps, improve accountability and enhance public confidence in government revenue management systems.

The development also underscores the importance of accurate tax administration within the public sector. VAT remains one of Nigeria’s key non-oil revenue sources, making timely remittance and proper accounting essential to government finances. Ensuring compliance by all institutions involved in revenue collection and payment processing is considered critical to strengthening fiscal sustainability and supporting public expenditure programmes.

Industry observers note that the recovery of the unremitted VAT may encourage closer monitoring of government transactions and financial processes going forward. They argue that sustained oversight can help identify systemic weaknesses, reduce opportunities for revenue leakage and improve overall efficiency in public finance administration.

As hearings continue, the Public Accounts Committee has reiterated its commitment to recovering all outstanding public funds and ensuring that institutions comply fully with financial regulations. Lawmakers say the investigation into Remita-related transactions remains active and that additional recoveries may emerge as the review progresses. For now, the recovery of N521.77 million from the Central Bank stands as one of the most significant outcomes of the committee’s ongoing effort to strengthen accountability and protect public resources.