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A report by the Auditor-General of the Federation has unearthed tax irregularities amounting to N14.33bn across more than 30 Ministries, Departments, and Agencies.The findings, disclosed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, highlight serious lapses in tax deductions, remittances, and compliance with financial regulations between 2020 and 2021.The report revealed that six MDAs were responsible for N129.34m in under-deduction of taxes.
Paragraphs 234 and 235 of the Financial Regulations (2009) mandate accounting officers to ensure that all applicable taxes, such as Value Added Tax and Withholding Tax, are deducted and remitted promptly to the Federal Inland Revenue Services.
However, the audit observed widespread breaches of these provisions.
The Federal Road Safety Corps, Abuja, was identified as the highest offender, with an under-deduction of N90.57m, while the Federal Ministry of Labour and Employment, Abuja, recorded the smallest shortfall of N623,162.80.
The audit report read, “The sum of N129,341,764.04 was the amount of under deduction of taxes by six ministries, departments and agencies, and
“The Federal Road Safety Corps, Abuja, has the highest amount of N90,579,554.92 while the Federal Ministry of Labour and Employment, Abuja, has the least amount of N623,162.80.”
Other agencies implicated include Federal Polytechnic Bida, Niger State; Nigerian Security Printing and Minting Company Plc, Abuja; National Water Resources Institute, Kaduna; and Council for the Regulation of Freight Forwarding in Nigeria.
A more concerning irregularity was the non-deduction of taxes, which amounted to N2.64bn across 21 MDAs.
The report noted that these agencies failed to deduct taxes from payments made to contractors and other beneficiaries, violating established financial regulations.
The NSPM, Abuja, led the defaulting agencies in this category with a discrepancy of N1.01bn, while the Federal Medical Centre, Ebute Meta, was the least offender, with an amount of N617,427.66.
The report read, “The sum of N2,636,147,740.99 was the amount of taxes not deducted from payments to several beneficiaries by 21 Ministries, Departments and Agencies, and
“The Nigerian Security Printing and Minting Company Plc, Abuja, has the highest amount of N1,009,286,718.93 while the Federal Medical Centre, Ebute Meta, has the least amount of N617,427.66.”
Other defaulting MDAs include Nigerian Railway Corporation, Ajaokuta Steel Company, Ministry of Petroleum Resources, Nigeria Police Force, and Corporate Affairs Commission.
The most significant breach involved non-remittance of taxes, amounting to N11.56bn.
According to the report, 11 MDAs deducted taxes but failed to remit the funds to the Federal Inland Revenue Service, as required by law.The NSPM, Abuja, was again highlighted as the largest defaulter, with a total of N10.39bn unremitted taxes.The Federal Medical Centre, Katsina, accounted for the lowest unremitted amount of N1.37m.
The report read, “The sum of N11,561,131,193.52 was the amount of taxes not remitted to relevant tax authorities by eleven Ministries, Departments and, Agencies, and
“The Nigerian Security Printing and Minting Company Plc, Abuja, has the highest amount of N10,393,793,419.34 while the Federal Medical Centre, Katsina, has the least amount of N1,371,984.59.”
Other agencies flagged in this category include Galaxy Backbone Limited; Irrua Specialist Hospital, Edo State; Aminu Kano Teaching Hospital, Kano; and Medical Rehabilitation Therapists (Registration) Board of Nigeria, Abuja.
The Auditor-General of the Federation also uncovered N69.93bn in unrecovered tax liabilities across 26 Federal Inland Revenue Service outstations nationwide.
The findings, which spotlight lapses in tax enforcement, have raised concerns over the efficiency of the FIRS in recovering overdue tax assessments despite the provisions of the Federal Inland Revenue Service (Establishment) Act, 2007.
The FIRS outstations in Akwa Ibom, Cross Rivers, and Bayelsa States accounted for the highest combined unrecovered amount of N26.32bn. In contrast, the FIRS (MSTO), Gwagwalada, Abuja, recorded the least unrecovered tax liabilities, with N4.18m.
The report read, “The sum of N69,926,317,274.64 was the amount of unrecovered tax liabilities by 26 Outstations of the Federal Inland Revenue Service across the country, and
“The FIRS, Akwa Ibom, Cross Rivers and Bayelsa States offices have the combined highest amount of N26,324,196,289.63 while the FIRS (MSTO), Gwagwalada, Abuja, has the least amount of N4,180,362.94.”
The audit identified the following FIRS branches with notable unrecovered liabilities FIRS, Makurdi; FIRS (MSTO), Ibadan; FIRS (MSTO), Osogbo; FIRS (MSTO), Lagos; FIRS (MSTO), Aba; FIRS (MSTO), Akwa Ibom; FIRS (MSTO), Lafia; FIRS (MSTO), Abuja; FIRS (MSTO), Garki; and FIRS (MSTO), New Bussa.
The Auditor-General’s report has raised significant concerns about weak internal controls and widespread non-compliance with financial regulations among government agencies.
These lapses are said to undermine government revenue collection and public accountability.
The report recommends immediate corrective measures, including capacity building for accounting officers, stricter enforcement of tax laws, and heightened oversight of financial practices in MDAs.
It also urged the Federal Inland Revenue Service to recover the outstanding amounts and ensure strict adherence to financial regulations to avoid further revenue losses.