Four Federal Government agencies generated a total of N28.02 trillion between 2017 and 2019, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.
Of this amount, N22.68 trillion was remitted to the Federation Account.
The agencies are: the Nigerian National Petroleum Company Ltd. (NNPC); Federal Inland Revenue Services (FIRS); Department of Petroleum Resources (DPR) now Nigeria Upstream Petroleum Regulatory Commission (NUPRC); and the Ministry of Mines and Steel Development (MMSD).
These are contained in the recently published Fiscal Allocation and Statutory Disbursement (FASD) report, covering 2017 to 2019.
Agencies’ contributions
The NEITI FASD report revealed that FIRS generated the sum of N13.48 trillion during the period in review with Petroleum Profit Tax (PPT) accounting for N5.80 trillion (43.09%). Value-Added Tax (VAT) and other taxes accounted for 32% and 24% respectively.
FIRS recorded the highest revenue collection of N5.02 trillion in 2018.
Similarly, the NNPC generated about N8.82 trillion during the period, which broken down showed that N4.55 trillion came from domestic crude sales, while export receipts accounted for N4.27 trillion.
About N5.33 trillion was deducted at source for Joint Venture (JV) cash calls and others, leaving the net amount of N3.49 trillion transferred to the Federation Account.
“The deductions at source by NNPC negate the principle of the Federation Account,” the report said.
DPR (now NUPRC) generated N3.53 trillion for the three years under review, with royalty payments accounting for N3.40 trillion (96.41%).
It said the audit established that the surplus of N6.72 billion was as a result of unremitted receipts from prior year.
Similarly, the Ministry of Mines and Steel Development generated N12.498 billion of which the Mining Inspectorate Department (MID) contributed N6.43 billion while Mining Cadastral Office (MCO) accounted for N6.06 billion.
The breakdown of the figures also showed that minerals and non-minerals revenue contributed N12.84 trillion (56.61%) and N6.57 trillion (28.97%) respectively, while VAT accounted for N3.27 trillion (14.42%).
The audit covers four federal revenue generating and 11 beneficiary agencies that are involved in the management of extractive industries funds.
Generating, beneficiary agencies
The audit covers four federal revenue generating and 11 beneficiary agencies that are involved in the management of extractive industries funds.
It also covered nine selected states: Akwa-Ibom; Bayelsa; Delta; Gombe; Imo; Kano; Nasarawa; Ondo and Rivers.
It listed the beneficiary agencies as: the Niger Delta Development Commission (NDDC); Tertiary Education Trust Fund; Petroleum Trust Development Fund; Petroleum Equalisation Funds; Ecological Fund, and Stabilisation Fund.
Others are: the Nigerian Sovereign Investment Authority (NSIA); Development of Natural Resources Fund (DNRF); Excess Crude Account (ECA); Nigeria Content Development and Monitoring Board (NCDMB); and Petroleum Products Pricing Regulatory Agency (PPPRA).
On the NDDC, the report revealed that N755.96 billion was generated by the Commission – N551.08 billion (73%) contributed by oil and gas companies, while the balance of N203.90 billion (27%) by the Federal Government.
However, the total expenditure by the Commission during the period was about N882.3 billion.
Analysis of the expenditure showed that N778.29 billion (88.20%) was expended on development projects, while operational cost accounted for N104.07 billion (11.80%).
According to the FASD report, there was a gap between actual development projects expenditure as per audited financial statements and project monitoring list provided by the Commission in the sum of N522.60 billion.
“While N679 billion was reported in NDDC’s financial statement, the project monitoring list reported expenditure of N157 billion on physical projects among the nine member states,” it said.
The report however, disclosed that 40 oil and gas companies defaulted in their payment obligation to the Commission.
It put the PTDF revenue at N155.34 billion, 95% of which came from signature bonus paid by oil and gas companies, the main revenue source.
Of the N86.34 billion utilised by the agency within the period under review, N59.84 billion was spent on core operating expenses while N26.35 billion and N143 million was for personnel/administrative expenses and capital respectively.
The report noted that the PTDF extended funding to 125 approved institutions, 43 locals and 82 foreign institutions.
But there was low expenditure compared with the revenue released, as only 56% of revenue was utilised.
For the NCDMB, total receipts for the three years were N126.73 billion, of which payments accounted for N116.95 billion (92%) of the revenue.
The Federal Government stopped funding the agency from its budget in 2017, as such, 48.07% of the revenue was used for operating expenses while 51% was used for capital expenditure.
PPPRA on the other hand received a total of N27.68 billion as subventions for the three years, even as subsidy payment on petroleum products was discontinued.
The FASD report is in fulfilment of Nigeria’s obligation to the global Extractive Industries Transparency Initiative (EITI), and in compliance with the provisions of the NEITI Act 2007. (NAN)
