NNPC, Three Others Generate ₦28.02tn In Three Years – NEITI

The sum of ₦28.02tn has been generated by four revenue-generating agencies of the Federal Government between 2017 and 2019.

The Nigeria Extractive Industries Transparency Initiative disclosed this on Thursday.

According to NEITI, the agencies are; Nigerian National Petroleum Company Limited, Federal Inland Revenue Service, Department of Petroleum Resources, now Nigeria Upstream Petroleum Regulatory Commission, and the Ministry of Mines and Steel Development.

NEITI disclosed that ₦22.68tn was remitted to the Federation Account out of revenue generated.

The breakdown of the figures showed that minerals and non-minerals revenue contributed ₦12.84tn (56.61 per cent) and ₦6.57tn (28.97 per cent) respectively, while Value-Added Tax accounted for ₦3.27tn (14.42 per cent).

NEITI wrote, “The cost of collection and joint-venture cash calls deductions by revenue-generating agencies accounted for the differences between the revenue generated and remittance.”

It revealed this in its latest Fiscal Allocation and Statutory Disbursement report which covered the period 2017-2019.

The audit report examined total extractive industry revenue remitted into the Federation Account, tracked allocation and disbursement from the account to statutory recipients, as well as utilisation and application of the funds by the beneficiaries between the years 2017 to 2019.

Four federal revenue-generating and 11 beneficiary agencies that were involved in the management of extractive industries funds were audited.

The audit also covered nine selected states including Akwa-Ibom, Bayelsa, Delta, Gombe, Imo, Kano, Nasarawa, Ondo, and Rivers.

The beneficiary agencies include Niger Delta Development Commission; Tertiary Education Trust Fund; Petroleum Trust Development Fund; Petroleum Equalisation Funds; Ecological Fund and Stabilisation Fund.

Others include the Nigerian Sovereign Investment Authority; Development of Natural Resources Fund; Excess Crude Account; Nigeria Content Development and Monitoring Board; and Petroleum Products Pricing Regulatory Agency.

NEITI also noted that the FIRS generated ₦13.48tn within the period under review with Petroleum Profit Tax accounting for ₦5.80tn (43.09 per cent), while VAT and other taxes accounted for 32 and 24 per cent respectively.

The FIRS recorded the highest revenue collection of ₦5.02tn in 2018.

NNPC generated ₦8.82tn within the period, the breakdown showed that ₦4.55tn came from domestic crude sales, while export receipts accounted for ₦4.27tn.

It further disclosed that ₦5.33tn was deducted at source for JV cash call and others, leaving the net amount of ₦3.49tn as transferred to Federation Account.

NEITI reports state, “During the period under consideration, a total of ₦8.82tn was generated. However, only ₦3.49tn (39.55 per cent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls. The deductions at source by the NNPC negate the principle of Federation Account.”

DPR (now NUPRC) generated ₦3.53tn for the three years under review, with royalty payments accounting for ₦3.4tn (96.41 per cent).

NUPRC, however, transferred ₦3.53tn to the Federation Account, as the audit established that the surplus of ₦6.72bn as a result of unremitted receipts from the prior year.

The Ministry of Mines and Steel Development generated ₦12.498bn within the three years, as the Mining Inspectorate Department contributed ₦6.43bn while Mining Cadastral Office accounted for ₦6.06bn.

From the total revenue generated by the ministry, a sum of ₦7.56bn was shared with the three tiers of government in 2019.