By Abimbola Abdullahi

The Nigeria Extractive Industries Transparency Initiative (NEITI) said 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% of total remittances) for the period, while other non-mineral revenue (excluding VAT) contributed N4.80 trillion (about 33.37% of total remittances).

 These data were 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.

Executive Secretary of NEITI, 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 characterized all transactions within the sector.

The report, which is the fourth in the audit cycle, revealed that overall remittances to the Federation Account for the period increased by about 14%.

The Auditor General of the Federation, Shaakaa Chira represented by the Director of Audits, Sundung Eldad James, stated that the FASD report is useful to the office of the Auditor General and it is also in fulfillment of the Agency’s mandate as enshrined in the Constitution of Nigeria.

He stated that the report will further assist his office when performing the audit of the federation revenue, its collection, remittance, and disbursement process. Also it will aid periodic checks of deductions and transfers made before remittances and the FAAC Allocations” Eldad affirmed.

In his goodwill, Nigerian Midstream and Downstream Petroleum Regulations Authority (NMDPRA) Chief Executive Officer, Faruk Ahmed represented by the Director Operations Oseni Mukaila Adewale, stated that the role being played by NEITI over the years include transparency in public and private sector businesses and even beyond the extractive industries.

He said NEITI’s demand for accountability from stakeholders has increased sense of responsibility among agencies and government institutions towards enhancing revenue and maximum value for Nigerian people.

The report also revealed that; Out of a total mineral revenue of N6.40 trillion, 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%, and NNPC with N1.55 trillion, or 10.8%, while the least contribution was from the Solid Mineral with N13.33 billion, or 0.09%.

The report revealed that the contribution by the NNPC declined significantly by 56%, along with the FIRS, whose contribution also dropped by 10%.

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% of total remittances, increased by N3.86 billion from 2020 to 2021, with the highest contribution of N2.69 trillion, or 18.71% coming from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08% from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59% from other tax sources.

While the revenue from CIT in 2021 declined by 5.25% from 2020, the report said the revenue realized by the NCS in 2021 increased by 40.55%, 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% respectively for the corresponding years.

By Abimbola Abdullahi

The Nigeria Extractive Industries Transparency Initiative (NEITI) said 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% of total remittances) for the period, while other non-mineral revenue (excluding VAT) contributed N4.80 trillion (about 33.37% of total remittances).

 These data were 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.

Executive Secretary of NEITI, 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 characterized all transactions within the sector.

The report, which is the fourth in the audit cycle, revealed that overall remittances to the Federation Account for the period increased by about 14%.

The Auditor General of the Federation, Shaakaa Chira represented by the Director of Audits, Sundung Eldad James, stated that the FASD report is useful to the office of the Auditor General and it is also in fulfillment of the Agency’s mandate as enshrined in the Constitution of Nigeria.

He stated that the report will further assist his office when performing the audit of the federation revenue, its collection, remittance, and disbursement process. Also it will aid periodic checks of deductions and transfers made before remittances and the FAAC Allocations” Eldad affirmed.

In his goodwill, Nigerian Midstream and Downstream Petroleum Regulations Authority (NMDPRA) Chief Executive Officer, Faruk Ahmed represented by the Director Operations Oseni Mukaila Adewale, stated that the role being played by NEITI over the years include transparency in public and private sector businesses and even beyond the extractive industries.

He said NEITI’s demand for accountability from stakeholders has increased sense of responsibility among agencies and government institutions towards enhancing revenue and maximum value for Nigerian people.

The report also revealed that; Out of a total mineral revenue of N6.40 trillion, 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%, and NNPC with N1.55 trillion, or 10.8%, while the least contribution was from the Solid Mineral with N13.33 billion, or 0.09%.

The report revealed that the contribution by the NNPC declined significantly by 56%, along with the FIRS, whose contribution also dropped by 10%.

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% of total remittances, increased by N3.86 billion from 2020 to 2021, with the highest contribution of N2.69 trillion, or 18.71% coming from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08% from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59% from other tax sources.

While the revenue from CIT in 2021 declined by 5.25% from 2020, the report said the revenue realized by the NCS in 2021 increased by 40.55%, 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% respectively for the corresponding years.