‘Apparent Discrepancy’ N’assembly Panel Queries FRSC for ‘Generating N5.2bn But Remitting N1.9bn’

The National Assembly Joint Committee on Finance has raised concerns over the Federal Road Safety Corps’ (FRSC) revenue generation and remittance practices.

During the defense of the FRSC’s 2025 budget, the committee questioned the agency about generating N5.2 billion in 2024 but remitting only N1.9 billion to government coffers.

The inquiry was directed at Clement Oladele, an Assistant Corps Marshal in the FRSC, during a budget session held on Monday.

Senator Kingibe’s Concerns
Senator Ireti Kingibe, representing the Federal Capital Territory (FCT), expressed her dissatisfaction with the apparent discrepancy.

“You said your revenue for 2024 is N5.2 billion, but you just said you remitted N1.9 billion. So I don’t understand. I am confused,” Kingibe said during the session.

She further alleged that FRSC officials operate under daily monetary targets imposed by their superiors, a practice she said leads to unethical revenue collection tactics.

“I was about to turn into my street. There were FRSC people all over the place, and they stopped the car in front of me. I told my driver to stop because I wanted to know what he had done wrong,” she narrated. “They claimed his tyres were bad, but they were brand new. When I asked why they didn’t issue a receipt, they confessed that they had to meet daily monetary targets or risk trouble with their bosses.”

Kingibe added that such practices erode public trust and urged the FRSC to focus on safety enforcement rather than questionable revenue collection.

FRSC’s Defense
In response, Oladele denied allegations of non-remittance, asserting that all revenue generated is fully deposited in government accounts.

“The entire money generated by FRSC is fully remitted. We generated N5.2 billion in total revenue. The breakdown includes fines amounting to N1.9 billion,” he explained.

Oladele also highlighted that the revenue streams include penalties for traffic violations, administrative charges, and other fees. He maintained that the FRSC operates transparently and is committed to its mandate of road safety enforcement.

FRSC’s Role and Revenue Generation
The FRSC, established in 1988, is responsible for ensuring road safety across Nigeria. Over the years, it has become one of the key agencies involved in generating revenue through fines, licenses, and vehicle registration. However, the agency has faced criticism for alleged extortion and unprofessional conduct by some officers, which undermines its credibility.

Recent data from the National Bureau of Statistics (NBS) indicates that Nigeria loses approximately $9 billion annually due to road accidents, highlighting the critical role of the FRSC in reducing fatalities. Nonetheless, the agency’s focus on revenue generation has drawn scrutiny from lawmakers and civil society organizations.

Calls for Reform
Civil society organizations and industry stakeholders have called for reforms in the FRSC’s operations, emphasizing the need for transparency and accountability. The Joint Committee on Finance recommended a comprehensive audit of the FRSC’s revenue streams and remittance processes to address any lapses.

“The FRSC must focus on its primary mandate, which is road safety, rather than becoming overly preoccupied with revenue collection,”

said Ibrahim Musa, an analyst with the Civil Rights Watch, a non-governmental organization advocating for public sector transparency.

Comparative Analysis with Other Agencies
The FRSC is not alone in facing allegations of non-remittance of revenue. Several government agencies, including the Nigeria Customs Service (NCS) and the Nigerian National Petroleum Corporation (NNPC), have faced similar scrutiny in recent years. Analysts argue that systemic issues in revenue reporting and remittance hinder the government’s ability to maximize non-oil revenue sources.

Looking Ahead
The National Assembly’s interrogation of the FRSC highlights broader concerns about revenue leakages in Nigeria’s public sector. As the government seeks to diversify its revenue base amidst dwindling oil revenues, ensuring transparency and accountability in agencies like the FRSC becomes imperative.

Senator Kingibe’s insistence on accountability and the FRSC’s defense underscore the need for a clearer framework governing revenue collection and remittance. While the agency remains a critical player in road safety, addressing these discrepancies will be key to restoring public confidence in its operations.