Connect with us
Advertise With Us

NEWS

Federation Account Received N28.58trn In 5 Years – NEITI

Published

on

The Nigeria Extractive Industries Transparency Initiative (NEITI), on Sunday disclosed that N28.58trillion was remitted to the Federation Account between 2012 and 2016. The remittances came from three major sources: mineral revenues, non-mineral revenues and value added tax (VAT).The information is contained in the agency’s latest Fiscal Allocation and Statutory Disbursement (FASD) Audit report for the period 2012-2016. 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 essence is to examine funds receipt and their utilisation. This latest allocation and disbursement audit is the second by NEITI, the first cycle covered year 2007 – 2011.

The nine states covered by the statutory allocation and disbursement segment of the report are: Rivers, Bayelsa, Akwa Ibom, Nasarawa, Delta, Ondo, Imo, Kano and Gombe states. The Federal agencies are:  Niger Delta Development Commission (NDDC), Petroleum Technology Development Fund (PTDF), Tertiary Education Trust Fund (TETFUND); and Petroleum Products Pricing Regulatory Agency (PPPRA). The special funds are: Natural Resources Development Fund (NRDF), Petroleum Equalisation Fund (PEF), Excess Crude Account (ECA), Ecological Fund (EF), and Stabilization Fund (SF).

A breakdown of the N28.58trillion remitted to the Federation Account showed that mineral source contributed highest sum of N18.15 trillion (after deductions for joint venture cash calls and subsidy claims), representing 64 per cent of the total earnings, followed by non-mineral source N6.68 trillion, representing 23 per cent, while value-added tax (VAT) was put at N3.73 trillion, representing 13 per cent.

A year – by – year breakdown of the total remittances showed that N4.19trillion was remitted in 2012, while N4.73trillion was recorded in 2013. Furthermore, N4.69trillion was recorded in 2014 while N2.89trillion and N1.65trillion were remitted in 2015 and 2016 respectively.

Analysis of the N18.16trillion 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, while the 774 local government areas got N3.25 trillion. This is exclusive of N2.36trillion 13 per cent derivation to the oil, gas and mining producing states. 

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 N3.73trillion was shared as follows: FGN – N560billion, 36 States – N1.88trillion and 774 LGAs – N1.31trillion.

NEITI report disclosed that out of the N18.15trillion recorded from mineral revenue within the period, highest receipt of N4.73trillion 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 N4.69trillion in 2014 to N2.89trillion in 2015 and to N1.65trillion in 2016,” the report stated.

The report also revealed that out of total mineral revenue, the Nigerian National Petroleum Corporation (NNPC) remitted N8.62trillion, the Department of Petroleum Resources (DPR) remitted N3.80trillion, while Federal Inland Revenue Service (FIRS) remitted N10.46trillion, noting that NNPC remittances were highest in 2012, while its 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 2012-2016, 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,” the report stated.

On revenues allocation and utilisation by the states, the report disclosed that Akwa Ibom received the highest total mineral revenue of N873.59 billion among the nine states covered by the exercise.

ly 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.

Advertisement
Comments

MOST POPULAR

%d bloggers like this: