• Friday, March 01, 2024
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NNPCL, FIRS, others remitted N14.38 trn to federation account in 2yrs – NEITI

NEITI set to find Nigeria’s accurate fuel consumption

….as Federal, State, LGs shared ₦5.42 trillion

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the Federal government revenue generating agencies remitted a total of about ₦14.38 trillion as revenue from the extractive sector to the federation account between January 1, 2020 and December 31, 2021.

The revenue generating agencies include the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), the Ministry of Mines and Steel Development (MMSD), and the Nigeria Customs Service (NCS).

According to the Fiscal Allocation and Statutory Disbursement (FASD) report released on Thursday, mineral revenue accounted for ₦6.40 trillion (about 44.5 percent of total remittances) while non-mineral revenue (excluding VAT) contributed ₦4.80 trillion (about 33.37 percent of total remittances).

Orji Ogbonnaya Orji, executive secretary of NEITI, who presented the highlights of the report stated that the information and data contained in the NEITI latest FASD reports reviewed processes that characterized all transactions within the sector.

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“We are particularly interested in the information and data on the revenues either shared or allocated and how both helped government at all levels to address the numerous national development issues especially, poverty reduction.

“The report looked at independent assessment of financial transactions in the areas of revenue receipts and payments and how the processes weighed on the scale of transparency and accountability in the oil and gas sector during the period under review. Other areas that NEITI focused on, in this report, were projects executed, deployment to capital projects and recurrent expenditure and how these aligned with the core responsibilities of the agencies, the government and citizens expectations” he said.

Out of a total mineral revenue of N6.40 trillion, the DPR now NUPRC accounted for the highest contribution of about N2.71 trillion, (18.83 percent) of the total remittances, followed by FIRS with N2.13trillion(14.81 percent) and NNPC with N1.55 trillion(10.8 percent) while the least contribution was from the Solid Mineral with N13.33 billion, (0.09 percent).

The report revealed that the contribution by the NNPC declined significantly by 56 percent along with the FIRS, whose contribution also dropped by 10 percent. The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021.

Similarly, non-mineral revenue of about N4.80 trillion, increased by N3.86 billion from 2020 to 2021, with the highest contribution of N2.69 trillion, received from the Company Income Tax (CIT). This was followed by N2.025 trillion from the Nigeria Customs Service (NCS) and N85.25 billion from other tax sources.

Further details of the report showed that the Federal Government, States and Local Government shared ₦5.42 trillion in the period, while a total of ₦859.66 billion was deducted as 13 percent derivation fund which was and shared among the nine oil producing states (Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers).

A breakdown of the disbursements showed that while the federal government received about ₦2.80 trillion, the 36 state governments got ₦1.45 trillion, and the 774 local government areas received a total of ₦1.17 trillion in the period.

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In his remarks, Shaakaa Chira, the Auditor general of the Federation stated that the FASD report is useful to the office of the Auditor General and it is also in fulfillment of the Agency’s mandate as enshrined in the Constitution of Nigeria.

Represented by the director of Audits Sundung Eldad James, Chira stated that the report will further assist his office when performing the Audit of the federation revenue, its collection, remittance, and disbursement process. Also it will aid periodic checks of deductions and transfers made before remittances and the FAAC Allocations.

Revenues from other sources including exchange gain, excess crude, other non-mineral, solid mineral, and NNPC refunds, stood at N972.705 billion which was distributed among the three tiers of government.

Of the total amount, N234.32 billion was shared as exchange gain. Federal Government received N109.89billion; States N55.73billion, and N42.97billion, while N25.72billion was shared as 13 percent derivation revenue for the period.

Read also: Oil theft costs Nigeria N4.3tn in five years, NEITI reveals

Also, out of a total of N81.097 billion revenue shared as Domestic Excess Naira, the Federal Government got N37.168billion; States received N18.85billion, and Local Governments N14.53billion, while N10.54billion was shared as 13 percent derivation revenue for the period.

“From a total excess oil revenue of about N105.257 billion, the Federal Government received N55.36 billion; States received N28.079 billion, and Local Governments N21.648 billion, while N167.94 million was shared as 13 percent derivation revenue for the period.

“The Federal Government received about N126.67 billion out of the total N240.45 billion shared as non-oil Excess Revenue for the period, while the States got N64.25 billion, and Local Governments N49.53 billion.

“Out of a total of N16.83billion realized as Solid Mineral revenue, the Federal Government received N7.712 billion; State Governments received N3.911 billion, N3.016 billion went to the Local Governments, while N2.1 billion was shared as 13 percent derivation revenue.

“In terms of foreign exchange equalization revenue shared, the Federal Government got N21.083billion out of a total of N46.00 billion, the State Governments received N10.69 billion and Local Governments N8,244 billion. While N5.98 billion was shared as 13 prcent derivation revenue.

“From a total of N244 billion shared from FGN Intervention revenue, the federal government received N118.68 billion, dtate governments received N60.19 billion, local governments N46.41 billion, while N18.72 billion was shared as 13 percent derivation revenue.

“In terms of Excess Bank Charges, out of a total of N4.75billion shared, the federal government received N2.50 billion, state received N1.27 billion, and local governments N978.85 million,” it stated.