By Olugbenga Salami
The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has disclosed that Nigeria spent N1.16 trillion on fuel subsidy in 2021.
RMAFC Chairman, Dr. Mohammed Bello Shehu, made the disclosure on Thursday during a presentation to the Senate Public Accounts Committee, SPAC.
He said the amount was part of deductions made from federation crude oil sales proceeds, which totalled N1.20 trillion for the year.
Shehu was speaking during the committee’s probe of the 2021-2023 Audit Reports on the oil and gas industry conducted by the Nigeria Extractive Industries Transparency Initiative, NEITI.
According to him, aside from subsidy, other deductions included crude and product losses of N16.20 billion.
He listed pipeline repairs at N22.05 billion and strategic stock holding at N6.75 billion as additional deductions from federation revenue.
The RMAFC boss also raised concerns over the computation of derivation revenue to oil-producing states.
“The practice of computing 13% derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he said.
He explained that the method undermined the original intention of the derivation principle in the constitution.
Meanwhile, the submission of the Niger Delta Development Commission, NDDC, was stood down by the committee.
Committee Chairman, Senator Ibrahim Dankwambo, Gombe North, said members would study the report and the NDDC would reappear next week Wednesday.
The panel, however, frowned at the non-appearance of the Auditor-General of the Federation without any valid reason or representation.
Dankwambo threatened that the Auditor-General must unfailingly appear before the committee on Tuesday next week.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of powers of the National Assembly against him, which will lead to forced appearance,” he said.
The committee said it was probing the audit reports to ensure accountability in the management of oil and gas revenues.
