A report by the Auditor-General of the Federation has uncovered tax irregularities amounting to N14.33bn across more than 30 Ministries, Departments, and Agencies (MDAs). These 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 for the years 2020 and 2021. Six MDAs were responsible for N129.34m in under-deduction of taxes.
The Financial Regulations (2009), specifically paragraphs 234 and 235, mandate that accounting officers ensure applicable taxes such as Value Added Tax (VAT) and Withholding Tax are deducted and promptly remitted to the Federal Inland Revenue Services (FIRS). However, the audit found widespread violations of these provisions.
The Federal Road Safety Corps (FRSC) in Abuja was identified as the largest offender, with an under-deduction of N90.57m. On the other hand, the Federal Ministry of Labour and Employment, Abuja, recorded the smallest shortfall of N623,162.80. Other implicated agencies include the Federal Polytechnic Bida, Niger State; Nigerian Security Printing and Minting Company Plc, Abuja; National Water Resources Institute, Kaduna; and the Council for the Regulation of Freight Forwarding in Nigeria.
A more concerning issue was the non-deduction of taxes, which amounted to N2.64bn across 21 MDAs. The report indicated that these agencies failed to deduct taxes from payments made to contractors and other beneficiaries, violating established financial regulations. The Nigerian Security Printing and Minting Company Plc again led the defaulting agencies in this category, with a discrepancy of N1.01bn, while the Federal Medical Centre, Ebute Meta, recorded the least offender with N617,427.66. Other defaulting MDAs included the Nigerian Railway Corporation, Ajaokuta Steel Company, Ministry of Petroleum Resources, Nigeria Police Force, and the Corporate Affairs Commission.
The most significant breach discovered was the non-remittance of taxes, totaling N11.56bn. According to the report, 11 MDAs had deducted taxes but failed to remit them to the Federal Inland Revenue Service as required by law. The Nigerian Security Printing and Minting Company Plc again stood out as the largest defaulter, with N10.39bn in unremitted taxes, while the
