The Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, has said Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude sales proceeds for the same year.
The Chairman of RMAFC, Dr. Mohammed Bello Shehu, disclosed this on Thursday during a presentation to the Senate Public Accounts Committee, SPAC, which is probing the 2021-2023 audit reports on the oil and gas industry prepared by the Nigeria Extractive Industries Transparency Initiative, NEITI.
Shehu said aside from fuel subsidy, other deductions in 2021 included N16.20 billion for crude and product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holding.
He also faulted the method of computing derivation for oil-producing states.
“The practice of computing 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he told the committee chaired by Senator Ibrahim Dankwambo, Gombe North.
The Committee stood down the presentation by the Niger Delta Development Commission, NDDC, to allow members to study the report ahead of its reappearance next Wednesday.
Dankwambo expressed displeasure over the absence of the Auditor-General of the Federation at the investigative session without any representation.
He threatened to invoke the powers of the National Assembly to compel the Auditor-General’s appearance.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of the powers of the National Assembly against him, which will lead to forced appearance,” he said.
