The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Shehu, on Thursday revealed that Nigeria spent N1.16 trillion on fuel subsidy in 2021.
Shehu said an additional N1.20 trillion was deducted from proceeds of crude oil sales accruing to the Federation Account.
The RMAFC chairman made the disclosure while appearing before the Senate Public Accounts Committee (SPAC), which is investigating the 2021–2023 audit reports on the oil and gas sector.
The report was prepared by the Nigeria Extractive Industries Transparency Initiative (NEITI).
Shehu said fuel subsidy accounted for the largest deduction from federation revenues during the period under review, alongside several other industry-related expenses.
He told the lawmakers that crude oil and petroleum product losses amounted to N16.20 billion, while pipeline repairs cost N22.05 billion and strategic stock holding attracted N6.75 billion.
The RMAFC chairman also faulted the computation of the 13 per cent derivation fund, arguing that the current practice defeats the constitutional objective of the revenue-sharing principle.
“The practice of computing the 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he said.
Meanwhile, the committee deferred consideration of the submission by the Niger Delta Development Commission (NDDC), with members opting to study the agency’s report before reconvening with its officials next Wednesday.
The session also witnessed a rebuke for the Auditor-General for the Federation over his absence from the hearing.
Chairman of the committee, Senator Ibrahim Dankwabo condemned the failure of the Auditor-General to appear or send a representative.
He warned that the Senate would invoke its constitutional powers to compel his attendance if he fails to honour the next invitation.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk the invocation of the powers of the National Assembly, which will lead to his forced appearance,” Dankwabo warned.
(The Whistler)