Nigeria paid N1.16 trillion in fuel subsidies in 2021, while N1.20 trillion was taken from federation crude-sale revenue, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Shehu, told lawmakers in Abuja on Thursday.
Subsidies and deductions from oil revenue
Shehu presented the figures to the Senate Public Accounts Committee (SPAC), which is examining the 2021–2023 audit reports on Nigeria’s oil and gas sector prepared by the Nigeria Extractive Industries Transparency Initiative (NEITI).
Beyond the subsidy bill, he identified several other deductions and costs incurred during the period:
- Crude and petroleum-product losses: N16.20 billion.
- Pipeline maintenance and repairs: N22.05 billion.
- Strategic stockholding: N6.75 billion.
RMAFC challenges derivation calculation
The RMAFC chairman also told the panel that the method used to calculate the derivation allocation weakened the purpose of the policy during the period under review.
He said applying the constitutional 13 per cent derivation rate only to revenue remaining after deductions from total collections did not reflect the objective of the derivation principle. In his view, the calculation should not begin with a reduced revenue base after those deductions.
Committee delays NDDC appearance
The committee, led by Senator Ibrahim Dankwambo of Gombe North, postponed consideration of the Niger Delta Development Commission’s submission so that members could study the report. The commission is expected to return on Aug. 12.
Auditor-general warned of compulsory appearance
Dankwambo also criticised the Auditor-General of the Federation for failing to attend the investigative hearing and for not sending a valid representative.
He ordered the Auditor-General to appear before the committee on Tuesday the following week. Failure to do so, he warned, would prompt the Senate panel to invoke the National Assembly’s powers and compel his attendance.
