Nigerian Lawmakers have promised to investigate various malpractices in foreign exchange allocation to companies by the Central Bank of Nigeria (CBN) and other sources running to over 30 billion dollars annually.
Naija Mode Understands that is a sequel to a unanimous adoption of a motion moved by Rep. James Faleke (APC-Lagos) at the plenary on Thursday. Faleke said that it was public knowledge that the economic performance of the country is low at this critical time
Faleke said that in the past years, Nigeria had not been able to fund the capital aspect of its Appropriation Act year in the year for lack of funds due to low remittances of revenue by revenue-generating agencies. He also identified low payment of taxes by private companies and diversion of expected revenue by corporate organizations as other factors responsible for the inability of the government to fund the budget.
“The crude oil price benchmark in 2020 Appropriation Act was put at $57 dollar per barrel but the price of crude oil in the international market has dropped to 47 dollars per barrel. This clearly indicates that the major source of revenue towards funding the 2020 Appropriation Act is already in the
“There is an urgent need to rescue the country from over $30 billion dollars annual revenue leakages arising from tax evasion, malpractices, misuse and diversion of foreign exchange allocations by companies and other entities,” he said.
Faleke said that invoices overstatement by importers with the intention of obtaining large forex allocation above the international cost, insurance and freight value of goods were increasing the domestic inflation rate.
He alleged that the fictitious transfer of forex allocation for the payments of dividends to foreign shareholders of Nigerian companies above the dividend approved by the company’s board of directors and audited accounts led evasion of statutory 30 percent Company Income.