In 5 Years, NNPC Others Remitted N28.58trn To Federation Account – NEITI
The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that N28.58 trillion 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, according to NEITI, is to examine funds receipt and their utilization. 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. 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 N28.58 trillion remitted to the Federation Account shows that mineral source contributed the highest sum of N18.15 trillion (after deductions for joint venture cash calls and subsidy claims), representing 64% of the total earnings.
It is followed by non-mineral source with N6.68 trillion, representing 23%, while value-added tax (VAT) was put at N3.73 trillion, representing 13%. A year-by-year breakdown of the total remittances showed that N4.19 trillion was remitted in 2012, while N4.73 trillion was recorded in 2013. Furthermore, N4.69 trillion was recorded in 2014 while N2.89 trillion and N1.65 trillion were remitted in 2015 and 2016 respectively.
An analysis of the N18.16 trillion 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 LGs got N3.25 trillion. This is exclusive of N2.36 trillion 13% 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 the 774 local governments took N1.38 trillion. The total VAT revenue of N3.73 trillion was shared as follows, FGN, N560 billion; 36 states, N1.88 trillion and 774 LGAs, N1.31trillion. The NEITI report disclosed that out of the N18.15 trillion recorded from mineral revenue within the period, the highest receipt of N4.73trillion representing about 26.07% was recorded in 2013.
It however noted that the plunge in global oil revenue from 2015 negatively affected mineral revenue remittances within the period. The report also revealed that out of the total mineral revenue, the Nigerian National Petroleum Corporation (NNPC) remitted N8.62 trillion, the Department of Petroleum Resources (DPR) remitted N3.80 trillion, while the Federal Inland Revenue Service (FIRS) remitted N10.46 trillion, 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 N2.38 trillion in 2012 to N789 billion 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 revenue allocation and utilization 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. This was closely 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.
