Nigeria expended N1.16 trillion on fuel subsidy in 2021, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed.
Dr Mohammed Shehu, Chairman of the Commission, made the revelation during his presentation before the Senate Public Accounts Committee (SPAC) in Abuja on Thursday. The committee is investigating the 2021–2023 audit reports on the oil and gas industry, conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI).
Shehu further disclosed that N1.20 trillion was deducted from the federation’s crude sales proceeds during the same period.
Beyond the fuel subsidy, the RMAFC chairman detailed additional expenditures: crude and product losses amounting to N16.20 billion, pipeline repairs costing N22.05 billion, and strategic stock holding at N6.75 billion.
Derivation Computation Concerns
Shehu raised concerns about the computation of the 13 per cent derivation principle, stating that the current practice undermines its legislative intent.
“The practice of computing 13 per cent derivation on the balance of revenue after deductions from total collections is contrary to the intention of the derivation objective,” he informed the committee.
NDDC Submission Deferred
The Niger Delta Development Commission’s submission was stood down by the committee, chaired by Senator Ibrahim Dankwambo (Gombe North). Members were granted time to study the report, with the NDDC scheduled to reappear on August 12.
Auditor-General Summoned
Senator Dankwambo expressed displeasure over the Auditor-General of the Federation’s absence from the investigative session without valid representation.
The committee chairman issued a stern warning: “The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of powers of the National Assembly against him, which will lead to forced appearance.”
The investigative hearing continues as the committee scrutinises financial activities within Nigeria’s oil and gas sector.