‘FG’s e-revenue collection platform will curb corruption’

Do you think that this e-revenue platform initiative can check corruption in revenue collection in Nigeria?Just as the Accountant General of the Federation rightly said, there have been a lot of loopholes in revenue collection in the country. The new electronic revenue collection platform, if well harnessed, will boost the country’s revenue generation base. When […]

Do you think that this e-revenue platform initiative can check corruption in revenue collection in Nigeria?
Just as the Accountant General of the Federation rightly said, there have been a lot of loopholes in revenue collection in the country. The new electronic revenue collection platform, if well harnessed, will boost the country’s revenue generation base. When a system is automated, it makes it very difficult for anybody to tamper with the system. Before now, many revenue generating agencies would be very efficient in collecting revenues but of course a reasonable percentage of what they collected would not be remitted to the federal government coffers. Therefore there have been loopholes everywhere. So the automated system is aimed at consolidating and integrating the system. By the time the revenues are collected, they are meant to be remitted immediately. What that does for government is that government at any given time will know how much has been received and then determine the exact amount it has in its coffers. It is a good initiative by the federal government through the accountant general’s office. We believe that it is going to block various loopholes in the revenue collection system.
What is the implication of revenue diversion in the nation’s economy?
It is a corrupt practice as a matter of fact. Government agencies will collect revenues and fail to remit them immediately. The reason is because they want to earn some interests for their personal use. In most cases, these interests are not recorded by the government accounting system, so it becomes difficult to track the actual amount that the government has. And there is no system audit that actually determines what interest was paid on this. Sometimes even when the revenue collected are lodged in accounts, some people still get interests from there.
Are they paid to personal accounts?
It may not be paid to their personal accounts, but in their personal capacities. These funds will be in the agency’s current accounts, while the interests are being collected by some individuals. The initiative is a good thing.
Many people have expressed concerns that if corrupt officials working in these revenue generating agencies are not flushed out, this system would not work. What is your take?
To an extent, they are right. But the point is that when a system is automated, the operations become automated. Take for instance, the toll at the Nnamdi Azikiwe Airport. Before now people were given tickets; at times wrong tickets. At times no ticket was issued and people were just passing. But with automation, once the gate opens, it is recorded. There is no way that process can be circumvented because it is already known. I know that for every system, there is always a way to circumvent it. But in most cases it will be limited.
The Accountant General of the Federation said the new system would increase the availability of funds for government. What do you think?
If correct funds were remitted to the federal government at the time they are collected, government will have funds to execute its laudable projects. Yes; it is true.
It is reported that about fifty revenue generating agencies of the federal government failed to remit over ninety trillion naira between 2009 and 2012. Where really are these funds?
Obviously they couldn’t have been in accounts of individuals. When funds are not remitted to government, they still don’t belong to government. They may be in the individual accounts of these revenue generating agencies. But not until they are remitted to the government, you can’t say they belong to government because government cannot access them.
What effect will this policy have on deposit money banks?
Deposit money banks simply mean commercial banks. Revenue generating agencies have been directed to lodge their funds in all these banks for onward transmission to the consolidated accounts of the federal government. The effect on the economy generally is that banks that used to enjoy flow of fund liquidity will now be cash trapped, and will not have enough funds to make more incomes. Don’t forget that when these revenue agencies lodge these funds, they may require to be with the banks for up to sixty days. Within these sixty days, the banks can take them to the money market where they will make some money before remittance. Within the sixty days, they can also give short-term credit facilities to people who are also going to bring the loans back within a short period. With this platform, the incomes of these banks will actually be reduced. It will also reduce the available funds for credit facility among these banks. Right now the effect this initiation will have on commercial banks is that the interest rates will go up because everybody will be asking for funds. It will also affect people borrowing money from banks. But the beneficiaries will be people who have enough money and want to deposit in banks. It means that fix deposits will attract more interest rates. But for those who need the funds, the rates are going to be high. The available funds will be reduced. That is the effect in the economy.