A report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has stated that the federal government-owned revenue-generating agencies remitted a total of about N14.3tr as revenue from the extractive sector between January 1, 2020 and December 31, 2021.
The report titled, “Fiscal Allocation and Statutory Disbursement (FASD)” listed the revenue-generating agencies as: 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).
A breakdown of the remittances showed that mineral revenue accounted for N6.4tr (about 44.5% of total remittances) for the period, while other non-mineral revenue (excluding VAT) contributed N4.8tr (about 33.37 per cent of total remittances).
The report stated that out of a total mineral revenue of N6.4trn, DPR now NUPRC accounted for the highest contribution of about N2.7tr or 18.83 per cent of the total remittances, followed by FIRS with N2.1tr, or 14.81 per cent, and NNPC with N1.5tr or 10.8 per cent, while the least contribution was from the solid mineral with N13.3bn or 0.09 per cent.
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The report went further that the contribution by the NNPC declined significantly by 56 per cent, along with the FIRS, whose contribution also dropped by 10 per cent.
It attributed the decrease to the decrease in revenue generated from crude oil exports in 2021.
“Similarly, there was non-mineral revenue of about N4.8tr (or 33.37 per cent of total remittances), an increase by N3.8bn from 2020 to 2021, with the highest contribution of N2.6tr or 18.71 per cent coming from the Company Income Tax (CIT), followed with N2tr, or 14.08 per cent from the NCS and N85.2bn, or 0.59% from other tax sources.
While the revenue from CIT in 2021 declined by 5.25% from 2020, the report said the revenue realised by the NCS in 2021 increased by 40.55%, while other taxes significantly recovered from a deficit in 2020 to a positive balance in 2021.
It said in terms of disbursements to the three tiers of government, the federal government got N5.4tr while states and local governments received a total of N859.66 billion which was deducted as 13% derivation and shared among the nine oil-producing states after the deduction of excess petroleum profit tax (PPT) and royalty.
The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, while presenting the highlights of the report yesterday in Abuja stated that the information and data contained in the FASD reviewed processes that characterised all transactions within the sector.
He noted that it 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.
The Auditor General of the Federation, Shaakaa Chira, represented by the Director of Audits, Mr Sundung Eldad James, 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 Nigerian constitution.
He 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.
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