EXCLUSIVE: Cross River Government Receives N5.4Billion VAT Share, More Coming…

In Breaking News, Business & Economy, National News, Reports

By CrossRiverWatch Admin

The Cross River State Government last weekend received NGN5.4 billion from the Federal Government as its accumulated share of Value Added Tax (VAT) for the years 2015 to 2018, sources in the Central Bank of Nigeria CBN, have exclusively disclosed to CrossRiverWatch.

VAT is a tax levied on goods and services consumed. The rate is five percent and is shared among the three tiers of government. The Federal Government receives 15 per cent, while the States and local governments share 50 and 35 percent respectively.

Cross River state’s share was actually NGN6.5 billion, but only NGN5.4 billion was paid by the Central Bank of Nigeria into the State’s account with the United Bank for Africa (UBA) on Friday May 31, 2019 following statutory deductions, documents obtained by CrossRiverWatch reveal.

Disengaged aides of the Governor did not take their calls while others declined comments on the matter when contacted as the Governor is yet to appoint new cabinet members.

This figure, when added to the almost NGN3 billion gotten from the Federal Government as the last tranche of the Paris Club refund in March 2019, means the state received over NGN8 billion from the Federal Government excluding the monthly statutory allocations, between March and May 31, 2019.

Also, CrossRiverWatch findings reveal that the State will be expecting more money following the commissioning of a private audit firm to scoop ‘unreported revenues’ and ‘unwarranted deductions’ from banks.

The State, contrary to information made available to the public that it operates a ministerial single account (MSA) which the Governor claim was similar to the Treasury Single Account of the Federal Government, has no up-to-the-minute or up-to-the day details of how much it makes or looses.

The audit firm which CrossRiverWatch could not verify when it began its work, is said to have found over NGN4billion in unreported government revenue and unwarranted debits by banks. It is also unclear, when the audit will end as the State will then make claims for these monies after reconciling with the bank’s auditors.

NB: The Headline and lead paragraph have been edited to reflect the correct tax which is VAT in place of the PAYE which was earlier published.

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