The management of the University of Ilorin (UNILORIN), Kwara State, failed to remit N1 billion payable to the Consolidated Revenue Fund (CRF) of the Nigerian government, the annual report of the Auditor General for the Federation has revealed.

The report also accused the management of the institution of deducting taxes from workers’ salaries and failing to remit them to the Federal Inland Revenue Service (FIRS).

According to the report, UNILORIN deducted 227 million as Pay as You Earn (PAYE) tax from its employees’ earnings and failed to remit them to the government.

The Auditor General’s report for the year 2020 was presented to the National Assembly in December 2023. In more than 500 pages, the report chronicled the non-compliance and internal control weaknesses of the government’s Ministries, Departments and Agencies (MDAs).

For UNILORIN, the report flagged two items; non-remittance of Internally Generated Revenue (IGR) and non-remittance of PAYE tax.

Sulyman Abdulkareem, a professor of Chemical Engineering, was the Vice-Chancellor of the university between 2017 and 2022.

The spokesperson for the university, Kunle Akogun, said the university is preparing a statement to be made public on the alleged infractions.

“You know it affects the former vice-chancellor. So, we are trying to put out something but it’s not ready yet. We are still on it,” he said in a telephone conversation on Monday.

Non-remittance of IGR

The Office of the Accountant General of the Federation had in 2016 directed all MDAs receiving funding from the government to remit 25 per cent of their revenue or 80 per cent of their operating surplus to the government, whichever is higher.

“All partially-funded Federal Government Agencies/Parastatals should limit their annual budgetary expenditure to no more than 75 per cent of their gross revenue, and remit the 25 per cent to the CRF or pay 80 per cent of their Operating Surplus computed according to the approved template to the CRF, whichever is higher,” the report quoted paragraph 3b of the Treasury Circular issued in November 2016, as saying.

However, according to the report, UNILORIN generated N4.2 billion in 2018 out of which N1 billion –being 25 per cent– was supposed to be remitted to the CRF.

“Evidence of the remittance of N1,051, 163,575.07 to the CRF, being 25 per cent of the IGR above, was not produced for audit,” the report noted.

“The above anomalies could be attributed to weaknesses in the internal control system at the University of Ilorin, Kwara State.”

Non-remittance of PAYE

The report also accused the university of deducting PAYE tax amounting to N227.4 million from its employees’ earnings and failed to remit it to the FIRS, the government agency with the responsibility of accepting such taxes.

“Deductions for WHT, VAT and PAYE shall be remitted to the Federal Inland Revenue at the same time the payee who is the subject of the deduction is paid,” the report quoted paragraph 235 of the Financial Regulations (FR) 2009.

The audit report added that there was no evidence that the university remitted the amount to the relevant tax authorities.

The report recommended that the Vice Chancellor of the university be requested to account for the money, remit it to the CRF, and forward evidence of remittance to the Public Accounts Committees of the National Assembly.

“Otherwise, sanctions relating to failure to collect and account for government revenue prescribed in paragraphs 3112 of the Financial Regulations 2009 should apply,” the auditor general’s report stated.