The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, has disclosed that Nigeria spent N1.16 trillion on fuel subsidy in 2021.
He said an additional N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.
Shehu disclosed on Thursday while presenting the commission’s submission before the Senate Public Accounts Committee (SPAC), which is investigating the 2021–2023 audit reports on the oil and gas sector conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI).
According to him, apart from the N1.16 trillion expended on fuel subsidy, other deductions included N16.20 billion for crude oil and petroleum product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holding.
The RMAFC chairman also faulted the method used in calculating the 13 per cent derivation allocation for oil-producing states, arguing that it undermined the constitutional objective of the policy.
“The practice of computing the 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he told the committee.
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Meanwhile, the Senate committee postponed consideration of the submission by the Niger Delta Development Commission (NDDC), directing its members to study the report before the commission reappears next Wednesday.
The committee, chaired by Senator Ibrahim Dankwambo (Gombe North), also expressed displeasure over the absence of the Auditor-General of the Federation at the investigative hearing.
Senator Dankwambo described the Auditor-General’s failure to appear—or send a representative—as unacceptable, warning that the committee would invoke the powers of the National Assembly to compel his attendance if he fails to honour the next invitation.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk the invocation of the powers of the National Assembly, which will lead to his forced appearance,” the senator warned.
