NEITI: Nigeria earned N28trn from four agencies in three years

The Nigeria Extractive Industries Transparency Initiative (NEITI) says four federal government agencies generated a total of N28.02 trillion between 2017 and 2019.

NEITI disclosed this in its latest fiscal allocation and statutory disbursement (FASD) report released on Thursday.

Of the amount, the report said N22.68 trillion was remitted to the federation account.

It 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.

TheCable understands that the audit covered four federal revenue-generating and 11 beneficiary agencies that are involved in the management of extractive industries funds.

NEITI said the report also covered nine selected states: Akwa-Ibom, Bayelsa, Delta, Gombe, Imo, Kano, Nasarawa, Ondo, and Rivers.

A breakdown of the figures shows that FIRS generated N13.48 trillion within the period under review, with petroleum profit tax (PPT) accounting for N5.80 trillion (43.09 per cent).

Value-added tax (VAT) and other taxes accounted for 32 per cent and 24 per cent, respectively, while it recorded the highest revenue collection of N5.02 trillion in 2018.

The report said that N8.82 trillion was generated by the NNPC within the period, adding that N4.55 trillion came from domestic crude sales, while export receipts accounted for N4.27 trillion.

It further disclosed that N5.33 trillion was deducted at source for joint venture (JV) cash calls and others, leaving the net amount of N3.49 trillion, transferred to the federation account.

“During the period under consideration, a total of N8.82 trillion was generated. However, only N3.49 trillion (39.55 per cent) was remitted to the federation account due to deductions at source by NNPC for JV cash calls,” the FASD report said.

“The deductions at source by NNPC negate the principle of federation account.”

From the report, NUPRC (formerly DPR) generated N3.53 trillion for the three years under review, with royalty payments accounting for N3.40 trillion (96.41 per cent).

It added that the agency transferred N3.53 trillion to the federation account.

The audit established that the surplus of N6.72 billion was due to unremitted receipts from the prior year.

“Ministry of Mines and Steel Development (MMSD) generated N12.498 billion within the three years. A breakdown shows that Mining Inspectorate Department (MID) contributed N6.43 billion while Mining Cadastral Office (MCO) accounted for N6.06 billion. From the total revenue generated by the Ministry, a sum of N7.56 billion was shared to the three tiers of government in 2019,” the report said.