Petroleum Commission Contributes N2.71tn Mineral Revenue in One Year – NEITI
The Nigeria Extractive Industries Transparency Initiative (NEITI) says out of a total mineral revenue of N6.40 trillion, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) accounted for the highest contribution of N2.71 trillion in 2020-2021.
NEITI in its latest Fiscal Allocation and Statutory Disbursement (FASD) report which covered the period 2020-2021, said NUPRC, formerly known as Department of Petroleum Resources (DPR’s) contribution represented 18.83 percent of the total remittances.
Dr Orji Ogbonnaya Orji, Executive Secretary of NEITI, at the unveiling of the report in Abuja, said NUPRC was followed by the Federal Inland Revenue Service (FIRS), which contributed N2.13trillion or 14.81 percent.
The 2020-2021 NEITI’s FASD Report examined total extractive industries revenue remitted to the Federation Account, tracked allocation and disbursement from the account to statutory recipients, utilisation and funds application by beneficiaries.
Orji, while presenting the report said the Nigerian National Petroleum Company Limited (NNPC Ltd) contributed N1.55 trillion or 10.8 percent while the least contribution was from the solid minerals with N13.33 billion, or 0.09 percent.
“The report revealed that the contribution by the NNPC Ltd declined significantly by 56 percent, along with the FIRS, whose contribution also dropped by 10 percent.
“The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021,” he said.
Similarly, Orji said non-mineral revenue of about N4.80 trillion (or 33.37 percent of total remittances, increased by N3.86 billion from 2020 to 2021.
“The highest contribution of N2.69 trillion, or 18.71 per cent came from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08 per cent from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59 per cent from other tax sources.
“As the revenue from CIT in 2021 declined by 5.25 per cent from 2020, the revenue realised by the NCS in 2021 increased by 40.55 per cent while other taxes significantly recovered from a deficit in 2020 to a positive balance in 2021,” he said.
Orji said the remittances from royalty and other fee payments from DPR and MMSD (solid minerals) increased significantly by 84 percent and 43 percent, respectively for the corresponding years.
According to him, receipts from VAT, which increased significantly for the two years period, resulted in the remittance of ₦3.18 trillion or 22.1 percent of total remittances to the Federation Account, while revenue generated by NCS increased by 41 percent.
He further revealed that Federal Government, States and Local Governments shared ₦5.42 trillion mineral revenue during the period under review.
“In terms of disbursements to the three tiers of government, the report showed that while a total of about ₦5.42 trillion was distributed to the Federal, State and Local Governments for the period.
“A total of ₦859.66 billion was deducted as 13 per cent derivation and shared among the nine oil producing states after the deduction of excess petroleum profit tax (PPT) and Royalty.
“The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
“A breakdown of the disbursements showed that while the Federal Government received about ₦2.80 trillion, the 36 state governments got ₦1.45 trillion, and the 774 Local Government Areas received a total of ₦1.17 trillion,’’ he said.
The executive secretary said the report noted 2021 as the year with the highest revenue distribution across board, with two per cent increase between 2020 and 2021.
NAN/Hauwa Abu
