By Nathaniel Zaccheaus Abuja
The Senate Public Accounts Committee has directed the authorities of the University of Abuja to refund the N603m expended unauthorized which was expected to be remitted to the Consolidated Revenue Fund of the Federal Government.
SPAC at its last sitting sustained the query issued by the Auditor General for the Federation against the authorities of the University on the issue.
The AuGF had alleged that the varsity’s top officials allegedly mismanaged N603m from the N2.4bn they generated internally.
The AuGF stated this in its 2017 report.
The authorities of the University were expected to remit the N603m into the Consolidated Revenue Fund which is the 25 percent of the revenue generated in the institution.
However, the Vice-Chancellor of UniAbuja, Abdul-Rasheed Na’Allah while responding had claimed that the money generated Internally was not enough to run the affairs of the institution.
He told the Senate Committee on Public Accounts, chaired by Senator Matthew Urhoghide, that the authorities decided to spend N603m which was meant to be remitted to the Federation Account.
Na’Allah said, “Peculiarity of the universities in Nigeria is clear and does not have enough IGR to remit to the Consolidated Revenue Fund as adduced by the Auditor General.
“The Universities collect only third-party revenues from students. “Revenue collected is for a specific purpose such as union dues, Identity cards, medical fees, laboratory fees usually refer to as other charges.
“Cost recovery concept is adopted by the University that is a charge collected was used to pay for services rendered.
“For instance, identity cards charges were used to process ID cards for students. These revenues are not enough for the purpose collected and therefore the capacity for the University to remit surplus is lacking”
Urhoghide, who was represented by the Vice-Chairman of the Committee, Senator Ibrahim Hadejia, disagreed with the explanations of Na’Allah, and demanded that the university should refund N603m to the CRF.
The query read in part, “The Federal Circular Reference No. BO/REV/12235/259/VII/201 dated 11th November 2011 issued by the Honorable Minister of Finance restricted expenditure on IGR to 75 percent while 25 percent is to be remitted to the CRF.
“During the review of financial records and documents, it was observed that the University of Abuja generated the sum of ₦2,413,787,645.48 internally in 2016 and 2017.
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“The yearly revenue generated internally was ₦1,463,097,604.13 in 2016 and ₦950,690,041.35 in 2017.”
“Meanwhile, the university failed to remit 25 percent of its IGR amounting to ₦603,446,911.37 to the Consolidated Revenue Fund (CRF)
“The nonremittance of the IGR shows a lack of control in the expenditure of public funds. Furthermore, funds for developmental purposes are tied down.
“The Vice-Chancellor is required to remit the sum of ₦603,446,911.37 being 25 percent of the IGR to the CRF immediately and forward evidence of remittance to my Office for confirmation.”
