Failure to receive payment worth ₦974,100 for service rendered;
Under remittance of revenue to the CRF and non-remittance of IGR amounting to ₦46.62 million;
Refusal to deduct WHT and VAT amounting to ₦13.96 million;
These actions not only contravenes Financial Regulation 224 & 234 and Section 417 of the Nigerian Police Act but pose adverse economic consequences.
Once again, the 2018 Audit Report discloses discrepancies in the Nigerian Police Force. This time the negligence caused the nation at least ₦62.44 million in revenue. Nevermind this sum could provide two states of the art Primary Health Centers (PHC) in the country. In truth, the most infuriating aspect of these losses is that simple due diligence would have prevented them. But despite several audits and reports, they remain a mainstay.
For instance, what are the chances that a business offers services and fails to collect payment? Slim, right? Well, not for Gombe State Command, who sent personnel to guard banks and other organisations within the state but somehow forgot to collect payment. This unpaid service amounts to ₦974,100.
Furthermore, as revealed by the auditor’s report, the Force evaded remittance of ₦160,400 to the Consolidated Revenue Fund (CRF). In response to these claims, the Police Chief was short of words, which raises suspicion about the resting-place for said monies.
Speaking of unremitted funds, the Nigerian Police Academy, Wodil refused to forward 82.14% (₦46,56 million) of its revenue to the CRF. The academy achieved this feat by by-passing the TSA payment system and using the cash payment system. However, the school management posited that the said amount is service charged; yet failed to provide a service breakdown.
In a similar flow of events, the Police Academy overlooked necessary deductions as stipulated. Having awarded contracts, it refused to deduct 5% Withholding Tax (WHT) and 5% Value Added Tax (VAT). Both amounted to ₦13.97 million. The management, however, stated their full compliance with the WHT and VAT deductions. Thus, the said monies were deducted but diverted.
Continuing the trend, Imo State Command also failed to remit ₦883,600 from its revenue. Yet, when queried, the Command’s management declined to comment. What is more? The trend in non-remittance is not accurate, seeing as not all state commands were audited. So, in truth, the figures are a possible misrepresentation. They could be more.
| Station | Issue | Amount (₦) |
| NPF Gombe State Command | Non-Payment for Services of Police Guards | 974,100 |
| Under Remittance of Revenue into CRF Account | 160,400 | |
| Nigerian Police Academy Wudil, Kano | Non-Remittance of IGR | 46,457,935 |
| Non-Deduction of Withholding Tax (WHT) and Value Added Tax (VAT) | 13,966,179 | |
| NPF Imo State Command | Unremitted Revenue | 883,600 |
Improper Release of Exhibit
Elsewhere, the Imo State Command released items held as exhibits, omitting protocol. These were three cars, a TV set and a sum of money amounting to ₦100,000. There was no documentary evidence of the release procedure of these items as observed by the Auditor General.
| One ash colour Xterra Jeep with Reg. No. KSF 780 EE, marked as CER No. 09/2017 |
| One custom colour Lexus RX 300 Jeep with Reg. No. WER 672 TL, marked as Exhibit 49/2017; |
| One Toyota Camry with Reg. No. RLU 349 AA marked as CER 50/2017 |
| One black Samsung Television marked as CER 05/2018; and |
| Cash of ₦100,000 (One hundred thousand naira) marked as CER 01/2018. |
Financial Regulation and the Nigerian Police Act Stipulations
Besides fiscal irresponsibility, the NPF negligence contravened Financial Regulation (FR) 224 (ii), 232 and 234 (i). The FR stipulates that agencies must receive prompt payments on service completion for services rendered by government agencies. It also recommends advance payment for such services. Not to mention the sanctions attached to loss of revenue. It further states that the officer in question will be held liable for such loss and surcharged for the amount.
On issues relating to Withholding Tax (WHT) and Value Added Tax (VAT), such deductions are mandated by the FR. It thus directs the accounting officers in public offices to deduct and remit WHT and VAT for all supply and service contracts. According to the FR, failure to adhere to this will result in removing said sum from the agency’s statutory provision.
Furthermore, the 2004 Nigeria Police Act highlights procedures for disposing of exhibit items in Section 417 (1). It states that when such a situation arises, the court will be responsible for ordering the release of such item(s) to owners. If the owner(s) is unknown, such disposal will be at court discretion.
Risk and Implication on the Economy
Away from the legality of the NPF’s negligence are adverse implications for the economy. Uncharged services mean less revenue for a Police Force to carry out its activities. This outcome further creates a shortfall in revenue matching expenditure targets. Simply put, the money spent is greater than the revenue generated.
Also significant, arguably more crucial are the unremitted funds to the CRF. And the implications are straightforward. It does not take an Economist to know that less money is bad for business; especially when the business owner still pumps capital into said business with no proceeds. It simply is not sustainable.