Fuel Subsidy Cost Nigeria N1.16tn in 2021, RMAFC Tells Senate Panel

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has revealed that Nigeria spent N1.16 trillion on fuel subsidy in 2021.

Speaking on Thursday before the Senate Public Accounts Committee (SPAC) in Abuja, RMAFC Chairman, Dr. Mohammed Shehu, presented the commission’s findings during the committee’s review of the 2021–2023 audit reports on Nigeria’s oil and gas industry compiled by the Nigeria Extractive Industries Transparency Initiative (NEITI).

Shehu also disclosed that N1.20 trillion was deducted from proceeds generated from the Federation’s crude oil sales.

He said other deductions included N16.20 billion for crude oil and petroleum product losses, N22.05 billion for pipeline repairs and N6.75 billion for maintaining strategic petroleum stock.

The RMAFC chairman argued that the implementation of the 13 per cent derivation formula did not reflect its intended purpose.

“The practice of computing 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 stated.

During the session, the Senate committee postponed consideration of the report submitted by the Niger Delta Development Commission (NDDC), directing the agency to return on August 12 after lawmakers have reviewed the document.

Committee Chairman Senator Ibrahim Dankwambo expressed dissatisfaction over the failure of the Auditor-General of the Federation to attend the hearing or send a representative.

He warned that the National Assembly could compel the Auditor-General’s appearance if he fails to attend the next sitting.

“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of powers of the National Assembly against him, which will lead to forced appearance,” he said.

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