A recent report by the Auditor-General of the Federation has uncovered tax irregularities totaling N14.33 billion across more than 30 Ministries, Departments, and Agencies (MDAs). These findings, published in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, highlight critical lapses in tax deductions, remittances, and compliance with financial regulations for the years 2020-2021.
The report reveals that six MDAs were responsible for N129.34 million in under-deduction of taxes, with the Federal Road Safety Corps (FRSC) Abuja being the highest offender, accounting for N90.57 million in shortfalls. Meanwhile, 21 other MDAs failed to deduct taxes amounting to N2.64 billion from payments to contractors and beneficiaries. The Nigerian Security Printing and Minting Company (NSPMC), Abuja, was the leading defaulter in this category with a discrepancy of N1.01 billion.
The most significant irregularity pertains to the non-remittance of taxes, with 11 MDAs failing to remit N11.56 billion in collected taxes to the Federal Inland Revenue Service (FIRS). The NSPMC again topped the list, withholding a staggering N10.39 billion in taxes.
Additionally, the report identifies N69.93 billion in unrecovered tax liabilities across 26 FIRS outstations, with offices in Akwa Ibom, Cross River, and Bayelsa States accounting for the largest share of unpaid taxes.
These lapses in compliance and governance underscore weaknesses in internal controls and raise serious concerns about the efficiency of tax enforcement in Nigeria. The Auditor-General’s report calls for urgent reforms, enhanced oversight, and stronger enforcement of tax laws to safeguard government revenue and public accountability.
