GTBank Ordered to Remit VAT on Remita Commissions Over Eight-Year Period
The House of Representatives Public Accounts Committee has directed Guaranty Trust Bank (GTBank) to calculate and remit the Value Added Tax (VAT) on commissions earned from Remita transactions between 2015 and 2022. The move is part of an ongoing investigation into revenue leakages linked to the Federal Government’s use of Remita, a financial gateway technology employed to manage revenue collections for Ministries, Departments, and Agencies via the Treasury Single Account.
During Thursday’s hearing, the committee, chaired by BamideleSalam (Ede South/Ede North/Ejigbo/Egbedore Federal Constituency, Osun State), expressed concerns over the non-remittance of VAT during the early years of the Remita system. The investigation also covers compliance issues related to service agreements and operating procedures.
GTBank’s Executive Director, Ahmed Liman, acknowledged the omission, admitting the bank had not remitted VAT on its Remita commissions for an eight-year period. “We assumed that Remita, as the primary handler of the commission distribution, had fulfilled all necessary VAT obligations before transferring the fees to us,” Liman stated. He further explained that GTBankcharges 0.75% from users on the Remita platform and disclosed that in 2018, the bank received N254.49 million from the Office of the Accountant General of the Federation via Remita.
The committee, in response, ordered GTBank to calculate and remit the VAT due from its commissions for the years in question, directing that the payment be made into the Federal Government’s recovery accounts at the Central Bank of Nigeria.
The investigation extends beyond GTBank, with representatives from Keystone Bank, Zenith Bank, Sterling Bank, Polaris Bank, FCMB, Ecobank, and Wema also summoned. These banks have been referred to a reconciliation sub-committee to address discrepancies in their reports, with plans for further appearances before the main committee once the issues are resolved.
The investigation underscores the government’s efforts to close gaps in public revenue collection, with Remita—a key platform in Nigeria’s financial infrastructure—under particular scrutiny for compliance with tax regulations.
