The House of Representatives on Monday unveiled plans to investigate revenue generated by Nigeria Security and Civil Defence Corps (NSCDC) from the registration of Private Security Guard Companies across the country from 2021 to 2023.
Chairman, House Committee on Finance, Hon. James Abiodun Faleke stated this during the resumed engagement with revenue generating Ministries, Departments and Agencies (MDAs) on the 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
After the scrutinization of the Corps’ financial report presented to the Committee, Hon. Faleke requested a full register of all the Security Guards companies operating in the country, their full addresses, amounts paid as licence and renewal fees over the years in order to give the Committee proper insights into the NSCDC’s operations.
Committee Chairman Rep James Faleke advised the NSCDC to review its licensing and yearly renewal fees upward for Private Guard Companies (PGCs) as a means of shoring up her revenue generation capacity, especially in this austere time when revenue is needed to prosecute the 2024 budget.
While described as grossly inadequate the one-off licence fee of N2 million imposed for Grade 1 Private Guard Companies, with more than 500 Guards in their employ and N1.5 million for Grade 2 companies with less than 500 with a yearly renewal fee of N200,000 and N100,000 for the two categories of companies, Hon. Faleke called for upward review of the fees.
Speaking earlier, NSCDC Deputy Commandant General, Mr. Nwinyi Nwokuche disclosed that there are about 1,300 PGCs registered in the country with 400 of them in Lagos alone.
During the interactive session, Hon. Wole Oke expressed concern over the rationale behind Fiscal Responsibility Commission’s (FRC) insistence on financial statements prepared by Independent Accounting and Audit firms, considering the cost of hiring such professional services, when there are competent in-house staff do the job.
While responding to the inquiry, Mr. Nwokuche alleged that FRC officials insisted that the Corps’ annual financial and audited reports must be prepared by Independent Accounting and Audit Firms, for them to be acceptable.
Responding to inquiry on why this should be so, considering the fact that most of the MDAs have staff posted to them from the office of the Accountant General of the Federation (AGF) and that of the Auditor General of the Federation (AGF), FRC chairman, Mr. Victor Muruako denied the allegation.
He argued that the Commission at no time issued such directive, he disclosed that the Commission accepts financial and Audit statements from MDAs prepared by relevant staff as expressly contained in the Fiscal Responsibility Act which set up the Commission.
“As Chairman of the FRC, I’m not aware of the Commission insisting on Independent Accounting and Audit firms preparing the financial statements of MDAs before they could be acted upon by the Commission.
“FRC does not operate outside the Acts setting it up which is specific about preparation of financial documents and Reports,” Mr. Muruako noted.
While ruling, Hon. Faleke directed NSCDC officials to reappear before the Committee on Wednesday, 6th December, 2023.
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