Nigeria Generated N14.38trn Revenue In Two Years -NEITI

Executive Secretary, NEITI, Dr. Orji Ogbonnaya Orji.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the country generated a total sum of N14.38 trillion from revenue agencies between 2020-2021.

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

Executive Secretary of NEITI, Dr. Orji Ogbonnya Orji who disclosed this at the unveiling of the NEITI 2020-2021 Fiscal Allocation and Statutory Disbursement (FASD) Report on Thursday in Abuja, said,  “the total revenue remitted to the Federation Account (FA) for the period under review was N14.38 trillion”.

He explained that mineral revenue contributed the highest revenue for the period amounting to N6.40 trillion (45% of total revenue remitted), while other Non-Mineral revenue (excluding VAT) contributed N4.80 trillion (33% of total revenue remitted).

Summarily, he said, the Federation Account witnessed a 14% increase in remittance between 2020 and 2021.

The NEITI boss noted that NNPC’s contribution for the period decreased significantly by 56%, while FIRS followed suit by 10% between 2020 and 2021, attributing it to the decrease in revenue generated from crude export in 2021.

However, he said, remittances from royalty and other Free payments from the Defunct Department of Petroleum Resources (DPR) and the Ministry of Mines and Steel  Development (Solid Minerals) increased significantly by 84 % and 43% respectively between the corresponding years.

Dr. Orji said, “non-mineral revenue remittance increased by N3.86 million from 2020 to 2021. This gave a contribution of N4.80 trillion (33%) of the total remittance to the Federation Account”.

He said, “VAT remittance amounted to N3.18trillion (22%) of total remittance to FA during the period under review. The receipts from VAT increased significantly for the two years period. In the same vein, the revenue generated by the Nigerian Customs Service (NCS) increased by 41% between 2020 and 2021”.

According to him, a total of N859.66 billion was deducted as 13% derivation and distributed among the nine oil-producing states.

He said,  “during the period under review, N5.42 trillion was distributed to the three tiers of government. The Federal Government received the sum of N2.80 trillion, while N1.45 trillion and N1.17 trillion was received by the States and Local Government Areas respectively”.

Dr. Orji however, disclosed that in the reporting period, 2021 was registered as the year with the highest revenue distribution across board, which shows a 2% increase between 2020 and 2021.

Meanwhile, the report noted that there was a sharp increase in subsidy payments in 2021. Subsidy payments increased by N1.53 trillion (1433.14%) in 2021, moving from N106.99 billion in 2020 to N1.64 trillion in 2021.

It also noted that the percentage of deductions to revenue generated has consistently increased (exception of 2020), eating up the amount to be remitted to the Federation Account.

The NEITI said, “in 2021, the percentage of deductions to receipts was 84.20%. While receipts grew by 30.91% in 2021, deductions increased by 78.85%, almost triple the growth in revenue. The major dedication was in respect of JV cash calls.

“From the total receipts of N6.05 trillion, only N1.64 trillion (27.12%) was remitted to the Federation Account after deductions of N4.41 trillion.

“The largest components of NNPCL deductions were in respect of Joint Venture (JV) cash calls and subsidy recovery. JV cash call accounted for N2.19 trillion (49.75%), while subsidy recovery accounted for N1.75 trillion (39.62%), giving a combined total of N3.94 trillion (89.37%) of the total deductions.

“Total remittance to the Federation Account decreased by N557 billion (50.67%) in 2021, moving from N1.10 trillion in 2020 to N542.30 billion in 2021.

 “The sharp decrease was as a result of subsidy recovery which significantly increased by N1.53 trillion (1433.14%).

“At this rate of increase in subsidy recovery, there is likely to be no remittance by the NNPCL to the Federation Account”, it said.

However, the report urged the government to commission a study on petroleum product importation, consumption, and subsidy payment for the last five (5)  years to determine whether or not there were overpayments.

The subsidy study, according to the report, should also cover post subsidy era to provide the government with useful insight into petroleum products consumption in Nigeria.

It said, the Federal Government should launch an investigation into NNPCL’s deductions. Specifically, there should be a JV value for money audit for the period 2017 to date.

Dr. Orji while addressing the stakeholders, including the Civil Society Organisations (CSOs) and the Media, lamented that one major challenge the agency was facing at the moment was the absence of the NEITI National Stakeholders Working Group affected by the dissolution of all federal boards.

He said, the National Stakeholders Working Group commonly referred to in Nigeria as the (Board) was actually a multi-stakeholder coalition of extractive companies, civil society, and government, and was a mandatory requirement for any country’s membership of the 57-member international organisation.

“We have presented the case and appealed for an urgent decision to put the NSWG in place and provided the justifications for the need to address our peculiar case. We have received assurances that a decision will be made quite soon. I therefore use this medium to convey our appreciation to the global EITI for their continuing understanding while hoping that this gap in our operations will be fixed”, he said.

The NEITI Report covered FAAC allocations to the three tiers of government and other statutory recipients including those agencies that received allocations and a total of sixty-nine (69) companies and the Nigeria Liquefied Natural Gas (NLNG). Thirteen (13) Government Entities and One (1) State Owned Enterprise which is the NNPC Ltd.

The Report was put together by an indigenous firm, Messrs Amedu Onekpe & Co.


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