The latest Fiscal Allocation and Statutory Disbursement (FASD) report recently published by the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed that four Federal government agencies generated a total of N28.02 trillion between 2017 and 2019, out which, N22.68 trillion was remitted to the Federation account.
NEITI listed the agencies to include: Nigerian National Petroleum Corporation (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).
Breakdown of the figures show that minerals and non-minerals revenue contributed N12.84 trillion (56.61%) and N6.57 trillion (28.97%) respectively, while Value-Added Tax (VAT) accounted for N3.27 trillion (14.42%). The cost of collection and Joint-venture cash calls deductions by revenue generating agencies accounted for the differences between revenue generated and remittance.
These information and data are contained in the latest Fiscal Allocation and Statutory Disbursement (FASD) report recently published by the Nigeria Extractive Industries Transparency Initiative (NEITI) which covered the period 2017-2019.
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: 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: 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 highest revenue collection of N5.02 trillion in 2018.
The report disclosed that a total sum of ₦8.82 trillion was generated by NNPC within the period. 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 source for JV cash call and others, leaving the net amount of N3.49 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 N3.40 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 as a result of unremitted receipts from prior year.
Ministry of Mines and Steel Development (MMSD) generated ₦12.498 billion within the three years period. Breakdown show 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 ₦7.56 billion was shared to the three tiers of government in 2019.
