The Nigeria Extractive Industries Transparency Initiative (NEITI) on Thursday reported that four revenue agencies, namely the Nigeria National Petroleum Company Limited, Federal Inland Revenue Service, Department of Petroleum Resources and Ministry of Mines and Steel Development, generated N28.02 trillion into the Federation Account from 2017 and 2019.
The agency made this disclosure in its just published Fiscal Allocation and Statutory Disbursement (FASD) report.
NEITI reported that of the amount earned, N22.68 trillion was remitted to the Federation Account as the FIRS generated the sum of N13.48 trillion within the period under review with Petroleum Profit Tax (PPT) accounting for N5.80 trillion (43.09 per cent).
According to the agency, out of the FIRS’ collections, Value-Added Tax (VAT) and other taxes accounted for 32 per cent and 24 per cent respectively while it recorded the highest revenue collection of N5.02 trillion in 2018.
It reported further that a total sum of N8.82 trillion was generated by the NNPC within the period composing N4.55 trillion from domestic crude sales, while export receipts accounted for N4.27 trillion.
In addition, the NNPC deducted N5.33 trillion at source for Joint Venture (JV) cash call and others, leaving the net amount of N3.49 trillion, transferred to the Federation Account”, it added.
NEITI further reported that during the period under consideration, a total of N8.82 trillion was generated but that only N3.49 trillion (39.55 per cent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls.
The extractive industry’s watchdog pointed out that “the deductions at source by NNPC negated the principle of Federation Account.”
The report further showed that DPR (now NUPRC) generated N3.53 trillion for the three years under review, with royalty payments accounting for N3.40 trillion (96.41 per cent) and transferred N3.53 trillion to the Federation Account, adding that audit also indicated a surplus of N6.72 billion was as a result of unremitted receipts from the prior year.
The NEITI further stated: “The Ministry of Mines and Steel Development (MMSD) generated N12.498 billion within the three years period. The Mining Inspectorate Department (MID) contributed N6.43 billion while Mining Cadastral Office (MCO) accounted for N6.06 billion.
“Minerals and non-minerals revenue contributed N12.84 trillion (56.61 per cent) and N6.57 trillion (28.97 per cent) respectively, while VAT accounted for N3.27 trillion (14.42 per cent)”, it added.
