By Anayo Akwitti
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, says Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from the Federation’s crude oil sales proceeds during the same period.
Shehu disclosed this on Thursday while appearing before the Senate Public Accounts Committee, which is probing the 2021–2023 audit reports on the oil and gas sector prepared by the Nigeria Extractive Industries Transparency Initiative (NEITI).
He said that beyond fuel subsidy payments, N16.20 billion was deducted for crude and petroleum product losses, N22.05 billion for pipeline repairs and maintenance, and N6.75 billion for strategic stock holding.
The RMAFC chairman also faulted the method used in calculating the 13 per cent derivation fund for oil-producing states.
According to him, computing the derivation on the balance of revenue after deductions, rather than on total collections, defeats the constitutional objective of the policy.
“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 said.
Meanwhile, the Senate committee stepped down the presentation by the Niger Delta Development Commission (NDDC), asking the agency to return next Wednesday after lawmakers study its submission.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation at the investigative hearing.
Chairman of the committee, Senator Ibrahim Dankwambo (Gombe North), described the absence as unacceptable and warned that the Auditor-General must appear before the panel on Tuesday or face a summons.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk the invocation of the powers of the National Assembly, which will lead to his forced appearance,” Dankwambo said.
The Senate committee is investigating issues raised in the 2021–2023 NEITI audit reports, including revenue remittances, deductions from crude oil proceeds and other financial transactions in Nigeria’s oil and gas sector
