Key points
- RMAFC says Nigeria spent N1.16 trillion on fuel subsidy in 2021.
- Commission says N1.20 trillion was deducted from federation crude sales proceeds.
- Senate committee summons Auditor-General over absence from hearing.
Main story
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, says Nigeria spent N1.16 trillion on fuel subsidy in 2021.
Shehu disclosed this on Thursday in Abuja while presenting before the Senate Public Accounts Committee (SPAC), which is probing the 2021 to 2023 audit reports on the oil and gas industry conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI).
He also told the committee that N1.20 trillion was deducted from federation crude oil sales proceeds during the period under review.
According to him, fuel subsidy was not the only deduction, as crude oil and petroleum product losses accounted for N16.20 billion, pipeline repairs for N22.05 billion and strategic stock holding for N6.75 billion.
Shehu further argued that the objective of the 13 per cent derivation principle was undermined by the method used in its computation.
Meanwhile, the committee stood down the submission of the Niger Delta Development Commission (NDDC) to allow members study the report before the agency’s reappearance on Aug. 12.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation from the investigative hearing.
Chairman of the committee, Sen. Ibrahim Dankwambo, warned that the Auditor-General must appear at the next sitting or face legislative sanctions.
The issues
The Senate committee is reviewing audit findings on Nigeria’s oil and gas sector to strengthen accountability, improve revenue management and address issues affecting remittances to the Federation Account.
What’s being said
“The practice of computing 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” Shehu said.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of powers of the National Assembly against him, which will lead to forced appearance,” Dankwambo said.
What’s next
The Senate committee is expected to continue its investigation next week, with the Auditor-General and the NDDC scheduled to appear before lawmakers.
Bottom line
The hearing highlights renewed legislative scrutiny of subsidy spending, oil revenue deductions and fiscal accountability in Nigeria’s petroleum sector.
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