Reps order JAMB to remit N3bn to FG; Asks BPE to account for N10 bn spent on firms’ registration 

By Femi Ogunshola

Abuja, Sept. 10, 2024

The House of Representatives has ordered the Joint Admission and Matriculation Board (JAMB) to remit N3.602 billion to the Federal Government’s Consolidated Revenue Fund (CRF).

Rep. Bamidele Salam, the Chairman, Public Accounts Committee, who gave the order during an investigative hearing in Abuja, said that the remittance was demanded by the Fiscal Responsibility Commission (FRC) and was not subject to personal interpretation.

He said that it was a matter of law or regulation, and had nothing to do with the difference between the 25 percent and 50 percent as argued by JAMB.

The Committee unanimously ordered that JAMB should pay the sum to FRC and provide evidence of the remittance within 30 days.

The News Agency of Nigeria (NAN) reports that the FRC had dragged JAMB before the committee over unremitted operating surplus.

Mr. Bello Aliyu, the representative of FRC, said that as of 2021, and in agreement with the records submitted to the Committee, the liabilities were N390.725 million.

According to him, after the submission of that report, JAMB has submitted their 2022 audited financial statement. “We have computed the liabilities and duly informed them.

“The new liability as of 2022 is N3.602 billion. This we have notified them via our letter written on the  March 14, and another reminder, which we just submitted as of August 31.

“There was no response to the letter from the board,” he said.

Mr. Mufutau Bello, Director, Finance and Administration, JAMB, while reacting to the allegation, said that the difference in remittances figure was that FRC wanted to move the board to 50 per cent of revenue.

“As an organisation in 2019, because of our commitment to revenue remittance, the Federal Government reduced the cost of our registration from N5,000 to N3,500.

This, according to him, is for the benefits of all Nigerians, as we have been following with passion a remittance of 25 per cent on a yearly basis, and we are in the education sector.

“We have not increased any of our charges in the last 8 years; rather, we reduced the fee from N5000 to N3500, which is 30 per cent of our revenue.

“The Accountant-General always gives us the concession to operate 25 per cent of remittances,” he said.

He said that the FRC believed that the board should move to 50 per cent, as against the 25 per cent concession given by the Office of the Accountant-General, which is the area of difference.

“If you judge us on 25 per cent, we have over remitted over the years, and that’s what we have been doing,” he said.

In a related development, the House of Representatives has urged the Bureau for Public Enterprise (BPE) to account for about N10 billion allegedly used to register two companies for the Nigeria Postal Service (NIPOST).

Rep. Salam, Chairman, House Committee on Public Accounts made the call in Abuja at the resumed investigative hearing of the committee.

“No reasonable Nigerian will believe that N10. 4 billion was spent to register the two companies. These companies eventually folded up one year after takeoff,” he said.

He also said the companies, NIPOST Transport and Logistics Ltd., and NIPOST Property reportedly took off in May 2023, and folded up through a Presidential directive in May 2024.

The BPE Head of Finance and Accounts, Mr. Imam Rilwan, who stood in for the Director-General of the Agency, told the committee that of the said amount, N10 million was given to the two companies for their take off.

He said that about N400 million was given to the BPE to prepare the ground for the takeoff of the companies.

He said the issue of registering the two companies for NIPOST was approved in 2017.
This, he said, paved the way for BPE to expend about N423 million in registering and carrying out other activities for the eventual take off of the companies.

He said when the money was eventually released in 2023 the bureau had to recover its money, adding that the N423 million given to the BPE was used to rent office accommodation among other essential services.

He said while the bureau paid rent for the two companies from 2022, the companies took possession of the offices in May 2023, while they folded up in May 2024.

He said all property belonging to the two companies had been officially handed over to NIPOST management.

Responding, Salam said spending money from the government coffers before the money was released was a violation of the provisions of the Public Procurement Act.

Salam, however, directed the Director-General of BPE, Ayodeji Gbeleyi, to personally appear before the committee on September 11 at 12 noon with all relevant documents relating to the transaction.