Senate Committee: CBN debunks alleged non-remittance of surpluses

….Says 80% of surpluses remitted yearly

By Haruna Salami
Central Bank of Nigeria, CBN has debunked alleged none remittance of 80% operational surpluses into the Consolidated Revenue Fund, CRF in the last five years.

The Chairman, Senate Committee on Finance , Solomon Adeola Olamilekan (Lagos West) made the allegation at a Joint Senate Committees on Finance, National Planning, Foreign and Local Debts, Banking, Insurance and other Financial Institutions, Petroleum Resources (Upstream), Down Stream Petroleum Sector; and Gas on the 2022 – 2024 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) in Abuja Wednesday.

Senator Adeola in making the allegation said “Nigeria wouldn’t have been having problem of inadequate revenue to fund its annual budget if revenue generating agencies, were remitting 80% of their operational surpluses into the CRF as required by the Fiscal Responsibility Act.

“Specifically, the Central Bank of Nigeria which has yearly budget of N2.3 trillion, has not remitted any revenue from its operational surpluses into the Consolidated Revenue Fund within the last five years”.

However, in a swift reaction, Dr. Kingsley Obiora, Deputy Governor of CBN in charge of Economic Policy , debunked the allegation by declaring that 80% of the apex bank’s operational surpluses have always been remitted to the CRF on yearly basis.

The remittance, he explained, is done in line with the provisions of the Fiscal Responsibility Act and not that of the CBN Act which stipulates 75% remittance.

“With all due respect to the Senate and in particular, this committee, the CBN, as a law-abiding government agency, had not at anytime, defaulted in the remittance of its operational surpluses.

“We do this on yearly basis as required by the Fiscal Responsibility Act despite the fact that the CBN Act, requires us, to remit 75% only”, he said.

The Chairman of the committee therefore directed the CBN to produce documentary evidence of its remittances within the last five years unfailingly Friday this week .

He also told the Apex Bank to produce its Audited Account in the last five years as well as its position paper on monetary policy point of view on the 2022 – 2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper being considered by the committee.

“He who comes to equity must come with clean hands . Since you have declared before the whole world that CBN has been remitting 80% operational surpluses into CRF, it is necessary that we see the documentary evidence , as that would lay the controversy to rest.