The House of Representatives’ Public Accounts Committee (PAC) has directed SystemSpecs Ltd, operating as Remita, a prominent financial technology firm, to reimburse the Federal Government a substantial sum of N182.77 billion. This directive arises from a forensic audit conducted by Seyi Katola & Company (Chartered Accountants), which revealed that Remita withheld these funds from the Treasury Single Account (TSA) since 2015. The PAC, tasked in 2024 with investigating revenue leakages and non-remittance by government agencies, based its decision on the consultant’s report and corroborating documents from SystemSpecs, other TSA stakeholders, and the Central Bank of Nigeria. This move underscores the government’s commitment to fiscal transparency and accountability.
The audit uncovered discrepancies across three key areas. Firstly, Remita under-refunded transaction processing fees amounting to N3.42 billion, comprising N993 million in refundable fees and N2.42 billion in accrued interest calculated at the CBN’s Monetary Policy Rate of 27.25%. Secondly, the company failed to remit acquirer fees totalling N101.85 million, including N29.60 million in principal and N72.25 million in interest. Lastly, and most significantly, Remita failed to remit a staggering N179.25 billion in collected funds, which accumulated to N179 billion with N125 billion in interest charges. These combined liabilities form the basis of the N182.77 billion refund order.
The PAC’s Chairman, Bamidele Salam, emphasized the thoroughness and patriotic nature of the forensic audit, highlighting its contribution to strengthening Nigeria’s fiscal accountability framework. The committee’s report details the breakdown of the outstanding amounts, specifying the principal and interest components for each category. It explicitly recommends that SystemSpecs remit the entire N182.77 billion to the Federal Government Asset Recovery Account held at the Central Bank of Nigeria. This decisive action signals the government’s resolve to recover misappropriated public funds and ensure adherence to financial regulations.
The PAC’s directive to Remita comes in the wake of similar repayment orders issued to other deposit money banks involved in the TSA value chain. Notably, some of these banks have already complied, setting a precedent for Remita and other outstanding service providers. The committee has urged all remaining entities to promptly fulfill their obligations, emphasizing the importance of cooperation in ensuring the integrity of the TSA system. This coordinated effort aims to recover all unremitted funds and reinforce public trust in the government’s financial management practices.
The recovery of these funds represents a significant victory in the fight against financial irregularities within the government’s revenue collection system. The N182.77 billion, once returned, can be channeled towards critical development projects and social welfare programs, ultimately benefiting the Nigerian populace. The PAC’s proactive approach to investigating and addressing these leakages demonstrates a commitment to fiscal responsibility and transparency, setting the stage for improved public financial management.
This case serves as a stark reminder of the importance of robust oversight and accountability mechanisms within financial systems. The forensic audit and subsequent recovery efforts underscore the need for continuous monitoring and rigorous scrutiny of financial transactions to safeguard public funds and prevent future occurrences of misappropriation. The PAC’s unwavering stance sends a clear message that financial impropriety will not be tolerated and that all stakeholders within the TSA ecosystem must adhere to the highest ethical and legal standards. The success of this initiative will significantly contribute to strengthening public trust and ensuring the effective utilization of public resources for national development.
