The teaching hospital refused to remit ₦333.3 million to the Consolidated Revenue Fund;
Besides the danger it poses to Nigeria’s economic growth, it also circumvents Financial regulations;
Expert demands deliberate legislation to battle recurring fiscal imprudence in MDAs.
Continuing the stingy trend of non-remittance to the Consolidated Revenue Fund is Jos University Teaching Hospital, with ₦333.3 million. Once again, the 2018 audit report reveals this infringement with dire socioeconomic implications. Dataphyte observed this same trend earlier; Lagos University Teaching hospital failed to remit over a billion naira.
For some time now, experts have decried this regular trend in lack of accountability in federal parastatals. Besides oversight issues, the challenge with opacity in operations has always been with the opportunity cost on the nation, with JUTH being no different.
| NON-REMITTANCE OF INTERNALLY GENERATED REVENUE (IGR) INTO THE CONSOLIDATED REVENUE FUND | JOS UNIVERSITY TEACHING HOSPITAL | ₦333,386,549.15 |
Again, the economic climate is a factor Dataphyte continues to reference. How so? Nigeria’s 2021 Budget of ₦13.6trillion, an amount many experts claim is unrealistic, has a deficit of ₦5.20 trillion. A deficit arguably resulting from the nation’s overreliance on debt servicing. Thus, it would not be contrived to suggest that these unremitted funds would have gone some ways in turning the tides of economic uncertainty. Or at the very least, deliver social amenities to Nigerians. Unfortunately, failing to adhere to this does the opposite- sinks the economy, draining its financial strength.
Financial Regulation and Fiscal Responsibility Act ignored.
On the subject of economic implications, it is also pertinent to note JUTH’s action contravened section 224(i) of the Financial Regulations. The FR 224(i) states that “All accounts or statements requesting payment to Government revenue due shall be sent out in advance and should be there on the date by which payment ought to be made”. The section 236 also adds that “Revenue paid into the Revenue Accounts for the Internally Generated Revenue (IGR) of MDAs shall be transferred to the GRF (Government Revenue Fund) on or before 15th of the month following the month of collection of the Revenue.”
Elsewhere, the 2007 Fiscal responsibility act section 22(2) states that “The balance of the operating surplus shall be paid to the Consolidated Revenue Fund of the Federal Government, not later than one month, following the statutory deadline for publishing each corporation’s account.”
Amend Fiscal Responsibility Act- Expert
At the background of these recurrences is thoughtless legislation. Segun Elemo of Paradigm Support Leadership Support Initiative further arraigned the National Assembly for some of this negligence. He noted that it was high time NASS reviewed the Fiscal Responsibility Act, particularly sanctions to defaulters.
“It is becoming a recurring issue from the MDAs that most of them do not remit their generated revenue, though some of them do that partially. But the implication is that when this keeps happening, the Government struggles to finance its obligations. Thus, it is high time to get an effective measure from the National Assembly for the fiscal responsibility to be amended; there should be leadership commitments to fiscal prudence and fiscal transparency. By doing so, all of these problems will be solved”.
Segun Elemo | Paradigm Support Leadership Support Initiative