- The House of Representatives Public Accounts Committee (PAC) has directed Guaranty Trust Bank (GTB) to calculate and pay the VAT on commissions received from the Remita platform for 2015 to 2022
- The Executive Director of GTB, Ahmed Liman, revealed that the bank had not remitted VAT for eight years
- The committee’s actions reflect a broader effort to ensure financial transparency and adherence to tax regulations in Nigeria’s banking sector
The House of Representatives Public Accounts Committee (PAC) has instructed Guaranty Trust Bank (GTB) to calculate and remit the Value Added Tax (VAT) on commissions earned from the Remita platform for the period spanning 2015 to 2022.
This directive, issued on Thursday, September 9, is part of an ongoing investigation into alleged revenue leakages and non-compliance related to the Remita financial gateway.
Remita, a financial solution gateway technology, is utilized by the federal government for revenue collection on behalf of various Ministries, Departments, and Agencies, channeling funds into the Treasury Single Account (TSA). The PAC, led by Rep. Bamidele Salam, is scrutinizing the platform's adherence to standard operating procedures and service agreements.
During the hearing, the committee raised concerns over two key issues: the evidence of VAT remittance on Remita collections and the collection of fees during the initial phase of the Remita transaction process.
Ahmed Liman, Executive Director of GTB, revealed that the bank had not remitted VAT for the entire eight-year period. He argued that Remita was responsible for distributing commission fees among payment-receiving parties, implying that the platform had fulfilled its obligations before fee distribution.
Regarding fee collection, Liman noted that GTB charges a 0.75% fee on all transactions processed through Remita. He also mentioned that the bank received approximately N254,489,013 from the Accountant General via Remita in 2018.
In response to the committee's findings, the PAC has directed GTB to calculate and remit the VAT on commission fees accrued from 2015 to 2022 to the federal government’s recovery accounts managed by the Central Bank of Nigeria (CBN).
Other banks that appeared before the committee, including Keystone, Zenith Bank, Sterling Bank, Polaris Bank, FCMB, Ecobank, and Wema, were also scrutinized. These banks were referred to the reconciliation sub-committee to address noted discrepancies and are expected to provide updates on their progress before reappearing before the PAC.
The committee’s actions reflect a broader effort to ensure financial transparency and adherence to tax regulations in Nigeria’s banking sector.
CBN recapitalisation policy has got banks running helter-skelter for funds
Meanwhile, TheRadar had reported that Deposit Money Banks (DMBs) in Nigeria have been on their toes making efforts towards meeting the new recapitalisation policy of the Central Bank of Nigeria (CBN).
The new recapitalisation programme came 20 years after the last exercise in 2004.
