The Nigeria Extractive Industries Transparency Initiative (NEITI) says 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 January 1, 2020 and December 31, 2021.
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).
A breakdown of the remittances showed that mineral revenue accounted for N6.40 trillion (about 44.5 percent of total remittances) for the period, while other non-mineral revenue (excluding VAT) contributed N4.80 trillion (about 33.37 percent of total remittances).
The report revealed that the contribution by the NNPC declined significantly by 56 percent, along with the FIRS, whose contribution also dropped by 10 percent. The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021.
Similarly, non-mineral revenue of about N4.80 trillion (or 33.37 percent of total remittances, increased by N3.86 billion from 2020 to 2021, with the highest contribution of N2.69 trillion, or 18.71 percent coming from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08 percent from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59 percent from other tax sources.
While the revenue from CIT in 2021 declined by 5.25 percent from 2020, the report said the revenue realized by the NCS in 2021 increased by 40.55 percent, 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% and 43 percent respectively for the corresponding years.
Receipts from VAT, which increased significantly for the two years period, resulted in the remittance of about N3.18 trillion (or 22.1 percent of total remittances to the Federation Account, while the revenue generated by the NCS increased by 41 percent during the period under review.
Federal Government States and Local Government shared N5.42 trillion Mineral Revenue.
This 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.
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% of the total remittances, followed by FIRS with N2.13trillion, or 14.81 percent, and NNPC with N1.55 trillion, or 10.8 percent, while the least contribution was from the Solid Mineral with N13.33 billion, or 0.09 percent.
Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji while presenting the highlights of the report stated that the information and data contained in the NEITI latest FASD reports reviewed processes that characterised all transactions within the sector.
It looked at 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.
