A thunderclap of an exclusive audit report, obtained by The News Chronicle, has ripped through the usually guarded operations of the Nigerian Security Printing and Minting Company Plc (NSPM), exposing a financial abyss that could swallow vital government revenue.
The bombshell document casts a harsh, unflinching light on the company’s alleged failure to play by the book, allowing a staggering ₦804,108,391.91 in statutory taxes on contracts awarded to foreign entities to simply vanish into thin air, leaving a gaping hole in national coffers.
Like a leaky faucet steadily dripping away national wealth, the audit points to a systemic weakness that has allowed billions to slip through the cracks. The document, a veritable Pandora’s Box of financial irregularities, details how NSPM paid a staggering ₦13,401,806,531.88 to thirty-eight foreign companies for a range of procurements, including spare parts, machinery, bank note papers, and other items through letters of credit from the Central Bank of Nigeria (CBN). Yet, a significant chunk of statutory taxes, like a ghost in the machine, appears to have vanished into thin air.
The audit’s eagle eye spotted two critical omissions: the company’s failure to deduct the statutory 1% Stamp Duty, amounting to ₦134,018,065.32, and a 5% Withholding Tax totaling ₦670,090,326.59 on these contracts.
The report highlights that the non-deduction and remittance of these statutory taxes to the appropriate authorities remain a perplexing mystery, with “no reason provided” for this oversight.
The financial hemorrhaging, according to the audit, carries a double-edged sword of risks for the nation: a significant loss of government revenue and a resulting difficulty in funding the national budget. It’s a situation that could leave the government whistling in the wind, struggling to meet its financial obligations.
In a move that has raised eyebrows, the Management of the NSPM has, so far, remained as silent as the grave, offering “no response” to the serious issues raised in the audit. This lack of accountability has left the auditors with no choice but to stand firm on their findings. Their evaluation states unequivocally that “the findings remain valid until the Management implements the recommendations.”
The auditors, acting as the nation’s financial watchdogs, have laid down a clear path forward, providing a series of recommendations to stem the bleeding and set things right. The Managing Director of NSPM is being pressed to:
Justify to the Public Accounts Committees of the National Assembly the unremitted sum of ₦804,108,391.91. This is not a request but a demand for transparency and accountability.
Recover and remit the full amount to the Federal Inland Revenue Service (FIRS).
Forward concrete evidence of this remittance to the Public Accounts Committee of the National Assembly.
Face sanctions relating to the failure to collect government revenue as prescribed in paragraphs 3112(i) of the Financial Regulations, 2009, if these recommendations are not heeded.
