The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that four federal government agencies generated a total of ₦28.02 trillion between 2017 and 2019.
NEITI made this known via its latest Fiscal Allocation and Statutory Disbursement (FASD) report released on Thursday.
Of the amount, the report said ₦22.68 trillion was remitted to the federation account.
The report said the four agencies are the Nigerian National Petroleum Company Ltd. (NNPC), Federal Inland Revenue Services (FIRS), Department of Petroleum Resources (DPR) now Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Ministry of Mines and Steel Development (MMSD).
The FASD audit examined total extractive industry revenue remitted into the federation account, tracked allocation and disbursement from the account to statutory recipients as well as utilisation and application of the funds by the beneficiaries between the years 2017-2019.
A breakdown of the figures shows that minerals and non-minerals revenue contributed ₦12.84 trillion (56.61%) and ₦6.57 trillion (28.97%) respectively, while Value-Added Tax (VAT) accounted for ₦3.27 trillion (14.42%). The cost of collection and Joint-venture cash call deductions by revenue-generating agencies accounted for the differences between the revenue generated and remittance
NEITI’s FASD audit examined total extractive industry revenue remitted into the Federation Account, tracked allocation and disbursement from the account to statutory recipients as well as utilization and application of the funds by the beneficiaries between the years 2017-2019.
“The audit covered four (4) Federal revenue-generating and eleven (11) beneficiary agencies that are involved in the management of extractive industries funds. It also covered nine selected states: Akwa-Ibom; Bayelsa; Delta; Gombe; Imo; Kano; Nasarawa; Ondo and Rivers states.
“The beneficiary agencies include the Niger-Delta Development Commission (NDDC); Tertiary Education Trust Fund (TETFund); Petroleum Trust Development Fund (PTDF); Petroleum Equalization Funds (PEF); Ecological Fund (EF) and Stabilization Fund (SFs).
“Others are the Nigerian Sovereign Investment Authority (NSIA); Development of Natural Resources Fund (DNRF); Excess Crude Account (ECA); Nigeria Content Development and Monitoring Board (NCDMB) and Petroleum Products Pricing Regulatory Agency (PPPRA)”.
Findings on Specific Agencies Covered by the Report
The NEITI FASD report revealed that FIRS generated the sum of ₦13.48 trillion within the period under review with Petroleum Profit Tax (PPT) accounting for N5.80 trillion (43.09%), while Value-Added Tax (VAT) and other taxes accounted for 32% and 24% respectively. The Service recorded the highest revenue collection of ₦5.02 trillion in 2018.
The report disclosed that a total sum of ₦8.82 trillion was generated by NNPC within the period.
The breakdown shows that ₦4.55 trillion came from domestic crude sales, while export receipts accounted for ₦4.27 trillion. It further disclosed that ₦5.33 trillion was deducted at the source for JV cash calls and others, leaving the net amount of ₦3.49 trillion as transferred to Federation Account.
“During the period under consideration, a total of ₦8.82 trillion was generated. However, only ₦3.49 trillion (39.55%) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls. The Deductions at source by NNPC negate the principle of Federation Account”, NEITI’s report stated.
From the report, DPR (now NUPRC) generated ₦3.53 trillion for the three years under review, with royalty payments accounting for ₦3.40 trillion (96.41%). The agency however transferred ₦3.53 trillion to the Federation Account.
The audit established that the surplus of ₦6.72 billion was a result of unremitted receipts from the prior year.
