…..says NNPCL remits no money to Federation Account
……..NNPCL’s Mgt debunks allegation
The Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) has disclosed that the total sum of N5,244,037,636,561.60 accrued into the Federation Account in the first half of this year based on figures from the monthly reports of the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.
The RMAFC Chairman, Mr. Mohammed Bello Shehu, in a statement issued on Wednesday reported that out of the total gross revenue inflows into the Federation Account, the sum of N627,301,922,426.35 was from the NNPCL JV Petroleum Profit Tax (PPT) due recorded by the FIRS but the sum was utilized by the NNPCL for other FGN obligations.
He, however, noted that the NNPCL did not remit any amount into the Federation Account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA), 2021 as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the Federation Account was provided.
Shehu also reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N823,512,065,893.15 while the FIRS generated N3,655,894,989,129.28 as revenue but remitted N3,028,593,066,702.93 and retained the balance as cost of collection.
The RMAFC chief further clarified that the Nigeria Customs Service (NCS) remitted the sum N764,630,581,539.17
Furthermore, the statement indicated that the sum of N1,490,946,180,918.52 was generated as Value Added Tax (VAT) while the sum of N83,024,395,855.89 raked in from Electronic Money Transfer Levy (EMTL) collections, from which N3,320,975,834.23 was paid to FIRS as cost of collection.
According to the commission’s chairman, the FIRS also received N82,031,796,937.01 and N3,320,975,834.23 as cost of collection on PPT/CIT and EMTL collections respectively in the half year under review even as on total VAT collections, the FIRS/NCS got N59, 593,164,213.83 as cost of collection.
Similarly, the report indicated that the sum of N16, 680,990,990.93 raked in from the solid minerals sector while the N1,387,328,862,898.16 VAT collection was shared to the three tiers of government in accordance with the approved VAT sharing formula.
Shehu further disclosed that the sum of N1,117,075,572.57 was paid in the month of March, 2023 as Consultancy Fee on VAT and that the three tiers of government shared N3,069,594,889,669.74 as statutory allocations from January to June, 2023.
On payment of cost of collection to revenue generating agencies (RGAs) from the Federation Account component, he disclosed that the NCS received N53,524,140,707.73 while the NUPRC got N33,961,852,403.53 in the six month period.
This is even as the RMAFC chairman further confirmed that N48,105,698,218.35 was paid to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) being the agency’s collections from gas flaring penalty in accordance with the PIA 2021 provisions which mandated that 100% of the collections from gas flare breaches should be paid to it.
Meanwhile, the NNPCL’s management was reported on Thursday to have debunked the RMAFC’s allegation, stressing that the company remitted some revenues to the Federation Account during the half year period.
