November 12, (THEWILL) – The Nigerian Extractive Industries Transparency Initiative (NEITI) on Thursday said the federal government revenue-generating agencies remitted a total of about N14.38 trillion as revenue from the extractive sector to the Federation Account (FA) between 1 January 2020, and 31 December 2021.
The Deputy Director/Head of Communications and Stakeholders’ Management at NEITI, Obiageli Onuorah, in a statement on Thursday, said the revenue-generating agencies include 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).
Mrs Onuorah said a breakdown of the remittances showed that mineral revenue accounted for N6.40 trillion (about 44.5 per cent of total remittances) for the period, while other non-mineral revenue (excluding VAT) contributed N4.80 trillion (about 33.37 per cent of total remittances).
She explained that the information and data are contained in the latest Fiscal Allocation and Statutory Disbursement (FASD) report published by the Nigeria Extractive Industries Transparency Initiative (NEITI) which covered the period 2020-2021.
Mrs Onuorah said the Executive Secretary of NEITI, Ogbonnaya Orji, while presenting the highlights of the report, stated that the information and data contained in the latest FASD reports reviewed processes that characterized all transactions within the sector.
“It looked at an 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.
“Other areas that NEITI focused on, in this report, were projects executed, deployment to capital projects and recurrent expenditure and how these aligned with the core responsibilities of the agencies, the government and citizens’ expectations.”
The statement noted that the report, which is the fourth in the audit cycle, revealed that overall remittances to the Federation Account for the period increased by about 14 per cent.
Out of a total mineral revenue of N6.40 trillion, the report said the DPR now NUPRC accounted for the highest contribution of about N2.71 trillion, or 18.83 per cent of the total remittances, followed by FIRS with N2.13 trillion, or 14.81 per cent, and NNPC with N1.55 trillion, or 10.8 per cent, while the least contribution was from the Solid Mineral with N13.33 billion, or 0.09 per cent.
The report, according to the statement, revealed that the contribution by the NNPCL declined significantly by 56 per cent, along with the FIRS, whose contribution also dropped by 10 per cent.
It said the decrease in the revenue remittances by both the NNPCL and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021.
Similarly, it said non-mineral revenue of about N4.80 trillion (or 33.37 per cent of total remittances), increased by N3.86 billion from 2020 to 2021, with the highest contribution of N2.69 trillion, or 18.71 per cent coming from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08 per cent from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59 per cent from other tax sources.
It said while the revenue from CIT in 2021 declined by 5.25 per cent from 2020, the report said the revenue realized by the NCS in 2021 increased by 40.55 per cent, while other taxes significantly recovered from a deficit in 2020 to a positive balance in 2021.
However, the report said the remittances from royalty and other fee payments from the DPR and MMSD (solid minerals) increased significantly by 84 per cent and 43 per cent respectively for the corresponding years.
It said in terms of additional revenue from other sources such as exchange gain, excess crude, other non-mineral, solid mineral, and NNPCL refunds a total of N972.705 billion was distributed among the three tiers of government.
It said a breakdown of the details revealed that while a total of N234.32 billion was shared as Exchange gain, the federal government collected N109.89 billion; States N55.73 billion, and N42.97 billion, while N25.72 billion was shared as 13 per cent derivation revenue for the period.
“Out of a total of N81.097 billion revenue shared as Domestic Excess Naira, the federal government got N37.168 billion; States N18.85 billion, and Local Governments N14.53 billion, while N10.54 billion was shared as 13 per cent derivation revenue for the period,” it added.
From a total excess oil revenue of about N105.257 billion, the report showed that the federal government received N55.36 billion; States N28.079 billion, and Local Governments N21.648 billion, while N167.94 million was shared as 13 per cent derivation revenue for the period.
It further explained that the federal government received about N126.67 billion out of the total N240.45 billion shared as non-oil excess revenue for the period, while the States got N64.25 billion, and Local Governments N49.53 billion.
“Out of a total of N16.83 billion realized as Solid Mineral revenue, the federal government received N7.712 billion; State Governments N3.911 billion, N3.016 billion went to the Local Governments, while N2.1 billion was shared as 13 per cent derivation revenue.
“In terms of Forex equalization revenue shared, the federal government got N21.083 billion out of a total of N46.00 billion, with the State governments getting N10.69 billion, Local governments N8,244 billion, while N5.98 billion was shared as 13 per cent derivation revenue.
“From a total of N244 billion shared from FGN Intervention revenue, the report said the federal government received N118.68 billion, state governments N60.19 billion, local governments N46.41 billion, while N18.72 billion was shared as 13 per cent derivation revenue,” it said.
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