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FAAC To Recover N101bn From Customs After Audit Report

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A “financial audit firm, OOM Professional Services,” has flagged “discrepancies totalling about N101.17bn” in “revenue remittances by the Nigeria Customs Service,” prompting the Federation Account Allocation Committee to demand a “full recovery and redistribution of the funds” to the “appropriate beneficiaries.”

According to a “FAAC Post Mortem Sub-Committee document obtained on Monday by our correspondent” from a FAAC official, the “misclassification of funds and delayed remittances by commercial banks” significantly “distorted the statutory revenue sharing formula” and “short-changed sub-national governments.”

The firm, which began operations in “2008 as Lanre Ogunwale & Co” before rebranding, was “engaged by the Forum of Commissioners of Finance” to “conduct a detailed review of Customs remittances” into the “Federation Account” for the “2022–2023 fiscal period.”

The engagement culminated in a “report” presented at the “FAAC plenary session of 16th May, 2025,” where the “Chairman of the Forum informed members of the anomalies uncovered by the consultant.”

Following deliberations, the Federal Ministry of Finance directed the “FAAC Post Mortem Sub-Committee” to “verify and report with recommendations.”

A follow-up “stakeholders’ meeting” was held on “July 10, 2025,” at “Brick Wall Hotel, Asokoro, Abuja,” attended by representatives of the “Nigeria Customs Service,” the “Federal Inland Revenue Service,” the “Office of the Accountant-General of the Federation,” the “Central Bank of Nigeria,” and the “FAAC Secretariat.”

The “consultant re-presented its findings,” which were “unanimously agreed upon by the relevant agencies.” “The FIRS and NCS representatives were in agreement with the position of the consultant. It was established that the findings of the consultant contained in the report were accurate,” the document noted.

One of the “most critical errors identified in the report” was the “wrongful classification of N82,04bn (N82,037,823,474.76) as Import Duty” instead of “Import VAT.” The funds were posted into the “Federation Account” instead of the “VAT Pool Account” by four commercial banks – Guaranty Trust Bank, Globus Bank, Taj Bank, and Nova Merchant Bank.

“The sum of N82,037,823,474.76 being Import VAT was wrongly posted into the Federation Account as Import Duty instead of the VAT Pool Account by four commercial banks, namely Guaranty Trust Bank, Globus Bank, Nova Merchant Bank, and Taj Bank,” the document stated.

Unlike VAT, which is “shared under a separate formula” that “prioritises state and local governments,” “Import Duty is shared vertically,” disproportionately “favouring the Federal Government.” The consequence, according to the committee, was a “significant reduction in the share due to sub-national governments.”

“The remittance of Import VAT into the Federation Account as Import Levy has significantly reduced the share of the sub-nationals due to the application of the vertical revenue sharing formula rather than the VAT Sharing formula,” the document noted.

In addition to the VAT misclassification, the report revealed that another “N19.13bn (N19,130,495,656.89)” was “erroneously remitted to the Consolidated Revenue Fund of the Federal Government,” instead of the “Federation Account.” Of the “N22.05bn (N22,047,725,350.91)” originally thought to belong to the CRF, only “N2.92bn” was actually due there.

“The NCS has confirmed that the sum of N19,130,495,656.89 was Federation Account revenue comprising Import Duty, Fees, Excise, and CET. While only N2,917,229,704.49, comprising CISS, ETLS, Iron Levy, Port Levy, and Wheat Grain Levy, was CRF revenue,” the document disclosed.

With the “two misclassified sums combined,” the “total amount of funds wrongly posted” stood at “N101.17bn (N101,168,319,131.64).” “The amounts posted in error were N82,037,823,474.76 as Import Duty and N19,130,495,656.89 to CRF, which totalled N101,168,319,131.64,” the committee noted.

The sub-committee further observed that these errors affected not only “revenue sharing among government tiers” but also the “statutory cost of collection” paid to agencies such as the FIRS, NCS, and the North-East Development Commission.

“The Cost of Collection and grant to FIRS/Nigeria Customs Service and North-East Development Commission be recomputed,” the committee recommended.

Beyond “classification discrepancies,” the sub-committee highlighted “delays by commercial banks in remitting funds” collected on behalf of the “Nigeria Customs Service.” These delays, which in some instances “extended into months,” violated “financial regulations” and “contributed to cash flow uncertainty at the sub-national level.”

“Revenues collected by NCS through Commercial Banks were delayed for weeks and in some instances months before being remitted into the Federation Account, which is in breach of lawful provisions,” the committee stated.

In response to the findings, the sub-committee made “sweeping recommendations,” starting with the “immediate recovery and redistribution of the N82.03bn” misclassified as “Import Duty.”

“That the sharing of the sum of N82,037,823,474.76 Import VAT, which was erroneously classified as Import Duty and wrongly remitted to the Federation Account, be recovered and re-computed using the VAT sharing formula for possible net-off,” the document recommended.

It also called for the “recovery of the N19.13bn wrongly paid” into the “Consolidated Revenue Fund” and its “subsequent distribution to eligible beneficiaries” using the “vertical sharing formula.”

“The N19,130,495,656.89 erroneously remitted to the Consolidated Revenue Fund of the FGN should be recovered from Federation Account inflows and distributed to the beneficiaries using the vertical formula,” the report added.

The committee tasked the “Office of the Accountant-General of the Federation” with the responsibility of “recalculating and disbursing the corrected revenue allocations” to the “appropriate beneficiaries.”

“The OAGF should work out the appropriate percentages due to the beneficiaries,” the committee directed. The report also stressed the need for “fairness and accountability,” particularly as the “affected funds were shared using a formula” that “penalised sub-national governments.”

“This is to ensure fairness to the Sub-Nationals who were underpaid using the Federation Account sharing formula rather than the VAT Sharing formula,” it noted. The committee concluded by recommending the “payment of the consultant’s fees,” acknowledging the “critical role played in exposing the remittance discrepancies.”

The document ended with a “strong appeal to the Accountant-General to act swiftly.” The PUNCH further learnt that the Nigeria Customs Service remitted a total inflow of “N359.42bn” to the “Federation Account in May 2025,” representing “16.56 per cent” of the “total revenue generated by all revenue-collecting agencies for the month.”

The total contributions by “revenue-generating agencies” for the month stood at “N2.17tn,” with the Federal Inland Revenue Service leading with “N1.14tn,” or “52.73 per cent,” followed by the “Nigerian Upstream Petroleum Regulatory Commission/Ministry of Petroleum Resources (NUPRC/MPR),” which contributed “N615.13bn” or “28.33 percent.”

When contacted, the “spokesperson of the NCS, Abdullahi Maiwada,” said he was “not aware of the matter” and “declined to comment on it.

BIG STORY

South Africa Extradites Six Nigerians to US Over $6million Romance Scams Involving 100 Women

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The South African Police Service (SAPS) says six Nigerians will be extradited to the United States of America over allegations of defrauding over 100 women in a romance scam scheme.

In a statement published via X on Friday, the South African police said the six Nigerians are alleged members of the Black Axe network, who are wanted by US authorities in connection with charges of alleged wire fraud and money laundering.

SAPS said the suspects will be moved from a correctional facility in Cape Town to the airport, where they will be handed over to officials of the Federal Bureau of Investigation (FBI) and the United States Secret Service.

The South African police said the suspects, who were arrested in 2021, allegedly defrauded women in the US of over $ 6 million, which is about R100 million in South African currency.

“The six Nigerian nationals were arrested in South Africa in 2021, following a major takedown operation conducted by the Hawks/DPCI,” the statement reads.

“Through the coordination of INTERPOL South Africa, the six will today be transported from a correctional facility in Cape Town to Cape Town International Airport, where they will be handed over to officials from the Federal Bureau of Investigation (FBI) and the United States Secret Service, who arrived in South Africa this morning.

“The formal handover is expected to take place this afternoon.”

In August, the Economic and Financial Crimes Commission (EFCC) extradited two Nigerians to the US over alleged online sexual exploitation and sextortion of two teenage boys who later died by suicide.

Mudashiru Afeez Olawale and Adebola Festus were extradited after the US FBI’s investigations allegedly linked them to separate sextortion schemes targeting male minors.

 

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NNPC to Deploy 70 Self-Service Filling Stations Nationwide

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The Nigerian National Petroleum Company Limited, NNPCL, has announced plans to deploy between 50 and 70 smart, self-service filling stations across the country within the next six months.

The company said the initiative was part of a broader plan to transform its conventional retail outlets into modern energy and mobility hubs, offering petrol, electric vehicle charging, liquefied petroleum gas, compressed natural gas and other services.

The Executive Vice President, Downstream, NNPC Limited, Mumuni Dagazau, disclosed this on Thursday in Abuja while speaking at the commissioning of a technology-driven service station with an electric vehicle charging facility. The mega station is located along Bill Clinton Drive, Airport Road.

Dagazau said the newly commissioned station was the first of several smart outlets to be introduced nationwide, adding that the concept was to move beyond traditional petrol retailing and provide customers with multiple energy and mobility services in one location.

He said, “This is the first of many smart stations that we are going to have around the country. The whole concept is that we are trying to turn a filling station into an energy hub, and we are rolling out a lot of stations.

I think even in Abuja, for this type of station, we have about four or five. We have another two that we’re launching in Kano. This sort of smart stations that we’re doing.

“We are hoping to roll out a significant number, probably about 50 to 70 of these types of stations within the next six months. So this is what you’ll be seeing going forward from NNPC.

“So what you see here is that we are using all sorts of energy available to us, including EV, electric energy. We are going to be using gas; we are going to be using petrol. So it’s a centre where you can come, and we are going to be calling it our energy hub.”

The new model will also allow customers to dispense petrol themselves, including at night, through a digital payment system, although attendants will remain at the stations to assist customers.

Dagazau dismissed concerns that the introduction of self-service pumps would result in job losses, arguing that the expanded services would require more workers to operate and support the technology.

“Well, you saw all of the pumps have attendants. So I really don’t know what they’re talking about when it comes to jobs. What NNPC does is create jobs. What this does is create a job.

“You have an energy hub today. If you look at the average filling station and you look at the energy hub, you’ll find more people in the energy hub than you would find in the filling stations, right? So what we are doing is creating jobs for that. Somebody has to support the integration.

“Somebody has to support the automation. The EVs, we have to be here to support people. So nothing really changes for us. What we’re doing is just what the delivery to the customer is. The guarantee, the comfort of the customer, that’s really what we’re after. That’s what the smart delivery is all about.”

The Executive Director, Retail Operations and Mobility, NNPC Limited, Shettima Baba-Kukawa, said the Abuja station had a storage capacity of 180,000 litres of Premium Motor Spirit and 45,000 litres of Automotive Gas Oil.

The facility has 16 PMS pumps, two AGO pumps and six electric vehicle charging points installed in partnership with African Motor Works. It is powered entirely by solar energy through a system with a capacity of more than 200 kilowatts.

Baba-Kukawa said the outlet would also feature a quick-service restaurant, coffee shop, automated car wash, modern service bay and LPG dispensing facilities, while CNG and a vehicle conversion centre were planned.

He said, “The station is going to run 24 hours. And it is fully self-service. So for customers that want to trust themselves and dispense themselves, they can actually do that. Transactions are done on their phone app and concluded by dispensing the exact amount of fuel they purchased into their tanks.”

Despite the digital system, he said customers unable to use the application would not be excluded, as staff would be available to assist them.

Dagazau also disclosed that NNPC had begun plans to modernise its existing stations, stressing that the company was responding to changing customer expectations.

He said, “We’re going to modernise our station. That’s the word that we’re going to say. You don’t want to be going into the same station every day, every day, every day. You are demanding, so our modernisation is a demand from what the customer wants. The customer deserves a better quality of service, and we are delivering that quality of service.”

He said the company hoped that most of its stations would eventually adopt the new model, although the pace would depend on customer demand and the investment required.

The Managing Director, NNPC Retail, Huub Stokman, said the transformation was necessary as the downstream petroleum market evolved following deregulation and the commencement of operations at the Dangote Refinery.

He said consumers were increasingly demanding quality products, competitive prices, faster services, digital payments and alternative energy options such as EV charging and CNG.

“Above all, especially the younger generation, they want us to deliver it sustainably, hence the fact that you also see that this station is completely solar-powered,” Stokman said.

On her part, the Comptroller-General, Nigeria Immigration Service, KN Nandap, in a goodwill message at the commissioning, commended NNPC for combining conventional fuel retailing with electric vehicle charging and other modern services.

Nandap said the facility reflected Nigeria’s growing adoption of technology, cleaner energy and smart mobility, adding that such investments could create opportunities for employment, skills development and industrial growth.

The development comes as Nigeria’s downstream sector undergoes significant changes, with deregulation, increased domestic refining capacity and the emergence of alternative fuels reshaping how petroleum products are sold and consumed.

NNPC said its smart-station programme was intended to position its retail network for the changing market by combining conventional fuel sales with cleaner energy, digital services and other consumer-focused offerings.

 

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Nigerian Bishop Shot Dead in Johannesburg, Community Demands Justice

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A Nigerian cleric, Bishop Taiwo Michael Fakunle, has been killed in Johannesburg, South Africa.

Fakunle, 58, was reportedly killed last Friday, September 4, 2026, at his residence in Kensington, Johannesburg.

His murder has sparked outrage among Nigerians in South Africa, with the Nigerian Citizens Association South Africa (NICASA) condemning it in strong terms.

In a statement, NICASA President, Rev. Frank Onyekwelu, said the Nigerian community was shocked, outraged and deeply saddened by the bishop’s death.

Onyekwelu said preliminary information indicated that two suspects gained access to Fakunle’s residence and opened fire on him, reportedly shooting him more than seven times.

He said the killing of Fakunle, who hailed from Iye, Ilejemeje Local Government Area of Ekiti State, was more than an ordinary loss of life, describing it as a tragedy that had deeply affected the Nigerian community in South Africa.

Onyekwelu vowed that NICASA would pursue justice through every legitimate and lawful channel available.

The association called on the South African Police Service (SAPS) to conduct a thorough investigation into the killing and ensure that those responsible were brought to justice.

“We therefore make a strong and unequivocal call on the South African Police Service and every relevant government authority to pursue this matter with the highest level of urgency, professionalism and transparency.

“We demand a thorough and credible investigation that will establish exactly what happened, identify all those responsible, apprehend the perpetrators and ensure that they are brought before the courts to face the full might of the law.”

He stressed, “This was not merely an ordinary loss of life; it was a horrific and senseless act of violence that has robbed a family of a loved one and the Nigerian community of another precious life.

“NICASA condemns this barbaric killing in the strongest possible terms. Enough is enough.

“The continued loss of Nigerian lives through violent crime is deeply disturbing and cannot be allowed to become normal or treated as just another statistic. Every Nigerian life is valuable, and every murder deserves justice.”

Onyekwelu said the Consulate General of Nigeria in Johannesburg has been informed of the tragic incident.

We also note that a murder case has been opened at Jeppe Police Station, and investigations are currently ongoing.

We therefore make a strong and unequivocal call on the South African Police Service and every relevant government authority to pursue this matter with the highest level of urgency, professionalism and transparency.

We demand a thorough and credible investigation that will establish exactly what happened, identify all those responsible, apprehend the perpetrators and ensure that they are brought before the courts to face the full might of the law.”

He added, “The family deserves answers. The Nigerian community deserves justice. Bishop Taiwo deserves justice.

“NICASA further called on the Nigerian diplomatic authorities in South Africa to continue engaging the relevant South African authorities and to closely monitor the progress of the investigation until justice is served.

“We appeal to the South African authorities: Please do not allow this case to go cold. Do not allow another Nigerian life lost to violence to become another forgotten file. We expect accountability and justice.

“At this extremely painful moment, NICASA extends its deepest and heartfelt condolences to the immediate family of the late Bishop Taiwo Michael Fakunle, his relatives, friends, church community, fellow Ekiti indigenes, and the entire Nigerian community.

“We pray that Almighty God will grant the family strength, comfort and the fortitude to bear this devastating loss. May the soul of Bishop Taiwo Michael Fakunle rest in perfect peace.

“NICASA equally calls on all Nigerians and Nigerian community leaders across South Africa to remain calm, peaceful, and strictly law-abiding. We must not take the law into our own hands or allow our grief and anger to lead to further violence.

“We will pursue justice through every legitimate and lawful channel available to us.

“NICASA will continue to engage the relevant authorities and will follow the investigation closely, because the pursuit of justice for Bishop Taiwo is a responsibility we must not abandon.”

He added, “Enough of the killings. Nigerian lives matter. Justice for Bishop Taiwo Michael Fakunle.”

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