Report reveals how Nigeria earned N28.6trn from oil, others in 5 years [See Details]
The Nigeria Extractive Industries Transparency Initiative (NEITI) said that N28.58 trillion was remitted to the Federation Account between 2012 and 2016, from mineral revenues, non-mineral revenues and Value Added Tax (VAT).
NEITI disclosed this on its latest Fiscal Allocation and Statutory Disbursement (FASD) Audit report for the period 2012-2016, released in Abuja, on Sunday.
NEITI noted that apart from remittances to the Federation Account, the audit tracked statutory allocations and their applications with specific focus on nine states, four interventionist agencies, and five special funds.
The statement was signed by its Director of Communications and Advocacy, Dr. Orji Ogbonnaya Orji.
The nine states covered were Rivers, Bayelsa, Akwa Ibom, Nasarawa, Delta, Ondo, Imo, Kano and Gombe.
It also listed the Federal agencies as Niger Delta Development Commission (NDDC), Petroleum Technology Development Fund( PTDF), Tertiary Education Trust Fund, (TETFUND); and Petroleum Products Pricing Regulatory Agency (PPPRA).
It further identified the special funds as Natural Resources Development Fund (NRDF); Petroleum Equalisation Fund PEF); Excess Crude Account, ECA; Ecological Fund, EF, and Stabilisation Fund, (SF).
Giving a breakdown of the N28.58 trillion remitted to the Federation Account, NEITI noted that mineral source contributed highest sum of N18.15 trillion, after deductions for joint venture cash calls and subsidy claims.
This represented 64 per cent of the total earnings, followed by non-mineral source N6.68 trillion, representing a 23 per cent, while value-added tax, VAT, was put at N3.73 trillion, representing a 13 per cent.
“A year – by – year breakdown of the total remittances showed that N4.19 trillion was remitted in 2012, while N4.73 trillion was recorded in 2013. Furthermore, N4.69 trillion was recorded in 2014 while N2.89 trillion and N1.65 trillion were remitted in 2015 and 2016 respectively.
“Analysis of the N18.16 trillion mineral revenues shared among the three tiers of government showed that Federal Government received N8.32 trillion from 2012 – 2016, the 36 state governments shared N4.22 trillion.
“The 774 local governments got N3.25 trillion. This is exclusive of N2.36 trillion 13 per cent derivation to the oil, gas and mining producing states,” it said.
The report also disclosed that from the share of non-mineral revenues of N6.68 trillion, the federal government received N3.52 trillion, while the 36 states got N1.79 trillion and 774 local governments took N1.38trillion.
“The total VAT revenue of N3.73 trillion was shared as follows: FGN – N560 billion, 36 States – N1.88 trillion and 774 LGAs – N1.31 trillion.
“Out of the N18.15 trillion recorded from mineral revenue within the period, the highest receipt of N4.73 trillion representing about 26.07 per cent was recorded in 2013.
It however noted that the plunge in global oil revenue from 2015 negatively affected mineral revenue remittances within the period.
“There was a decrease in global oil revenue from 2015 which accounted for the decrease in mineral revenue from N4.69 trillion in 2014 to N2.89 trillion in 2015 and to N1.65trillion in 2016,” it added
NEITI further stated that out of total mineral revenue, the Nigerian National Petroleum Corporation (NNPC) remitted N8.62 trillion, the Department of Petroleum Resources (DPR), remitted N3.80 trillion, while Federal Inland Revenue Service, FIRS, remitted N10.46 trillion
It was noted that NNPC remittances were highest in 2012 while its Joint Venture (JV) cash calls were highest in 2014.
“NNPC’s net remittances to the Federation Account reduced from N2.38trillion in 2012 to N789billion in 2016.
“Out of the N18.16 trillion mineral revenues remitted in the period 2012 to 2016, the year 2013 accounted for the highest receipt of N4.73 trillion.
“There was a decrease in global oil revenues from 2015, which accounted for the decrease in mineral revenues from N4.68 trillion in 2014 to N2.89 trillion in 2015 and N1.65 trillion in 2016,” it said.
On revenues allocation and utilisation by the states, NEITI disclosed that Akwa Ibom received the highest total mineral revenue of N873.59 billion among the nine states covered by the exercise.
It noted Akwa Ibom was closely followed by Delta state that received N713.15 billion, while Nasarawa state got the lowest mineral revenue of N145.88 billion, closely followed by Gombe state with N155.22 billion. Imo and Ondo states received N190.42 billion and N247.87 billion respectively.
“Another important disclosure by the report was the trend of lingering heavy dependence on mineral resources among the states for their revenue inflows within the period under review.
“The states reliance on mineral revenue showed that between 40 per cent and 73 per cent of the states revenue is from mineral resources.
“Among the nine states covered by the exercise, Rivers and Bayelsa states were the most heavily dependent on mineral resources.
“Rivers State had an aggregate mineral revenue percentage of about 73 per cent of its total revenue for the five years reviewed.
You may be interested
(JUST IN) EndSARS protest: US shuts Consulate in LagosWebby - October 20, 2020
<!-- US Consulate, Lagos --> US Consulate, Lagos By Kazeem Ugbodaga The United States has shutdown its Consulate General in…
(Breaking) #EndSARS: Sanwo-Olu orders investigation into Lekki shootingWebby - October 20, 2020
<!-- Gov. Babajide Sanwo-Olu of Lagos State --> Gov. Babajide Sanwo-Olu of Lagos State By Kazeem Ugbodaga Lagos State Governor,…