FG generates ₦14.4 trillion as revenue from extractive sector in 24 months

This was disclosed by the Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Dr Orji Ogbonnaya Orji, during the presentation of the latest Fiscal Allocation and Statutory Disbursement report by the organisation which covered from 2020 to 2021.

The revenue-generating agencies include the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), the Ministry of Mines and Steel Development, and the Nigeria Customs Service.

The report which covered remittances from nine selected states of the federation, Akwa-Ibom, Bayelsa, Delta, Gombe, Imo, Kano, Nasarawa, Ondo and Rivers also covered the audit of four federal revenue-generating and 11 beneficiary agencies all involved in the management of extractive industries funds.

“The beneficiary agencies include Petroleum Technology Development Fund (PTDF); Niger Delta Development Commission (NDDC), Nigerian Content Development and Monitoring Board (NCDMB), Nigeria Midstream and Downstream Petroleum Resources Agency (NMDPRA) – PEF– PPPRA.

“Others are: Tertiary Education Trust Fund (TETFund); Nigeria Sovereign Investment Authority (NSIA), Development of Natural Resources Fund (DNRF), Stabilisation Fund, Ecological Fund, Excess Crude Account (ECA)” the report stated.

When the generated revenue was broken down, about 44.5% of the total remittances (₦6.40 trillion) was generated by mineral revenue. 33.37% of total remittances (₦4.80 trillion) came from non-mineral revenue - the Nigerian Customs Service (NCS) and Company Income Tax (CIT) while VAT remittances stood at ₦3.18 trillion and accounted for 22.1% of total remittance.

A breakdown of the total Mineral Revenue of ₦6.40 trillion showed the NUPRC accounted for 18.83% of the total remittances with the highest contribution of about ₦2.71 trillion. The FIRS came behind with total remittance of ₦2.13 trillion and represented 14.81% of the total remittances from mineral revenue.

The NNPCL came in third position with ₦1.5 trillion and represented 10.8% of total remittances while the Solid Mineral sector generated the least revenue with ₦13.3 billion, and accounted for 0.09 % remittance from mineral revenue.

The NEITI report also examined the total revenue from extractive industries which was remitted to the federation account, followed up with all allocation, utilisation and spending of revenue from the account to statutory recipients between 2020 and 2021.