By Obas Esiedesa
ABUJA—The three tiers of government in Nigeria shared N22.68 trillion from the Federation Account from the year 2017 to 2019, an audit report commissioned by the Nigeria Extractive Industries Transparency Initiatives, NEITI, has revealed.
The Fiscal Allocation and Statutory Disbursement, FASD, audit report which was released by NEITI, yesterday, showed that in the three years, a total of N28.02 trillion was generated by four federal agencies.
According to the report, revenues from minerals and non-minerals sectors contributed N12.84 trillion (56.61 percent) and N6.57 trillion (28.97 percent) respectively, while Value-Added Tax (VAT) accounted for N3.27 trillion (14.42 percent).
“The cost of collection and Joint-venture cash calls deductions by revenue generating agencies accounted for the differences between revenue generated and remittance,” the report added.
The revenues were generated by Nigerian National Petroleum Corporation, NNPC; Federal Inland Revenue Services, FIRS; Department of Petroleum Resources, DPR, now Nigeria Upstream Petroleum Regulatory Commission, NUPRC, and the Ministry of Mines and Steel Development, MMSD.
A breakdown of the revenues generated during the period showed that FIRS generated the sum of N13.48 trillion with the Petroleum Profit Tax (PPT) accounting for N5.80 trillion (43.09 percent), while Value-Added Tax (VAT) and other taxes accounted for 32 percent and 24 percent respectively. The Service recorded the highest revenue collection of N5.02 trillion in 2018.
The report also disclosed that N8.82 trillion was generated by NNPC within the period with the breakdown showing that N4.55 trillion came from domestic crude sales, while export receipts accounted for N4.27 trillion. It further disclosed that N5.33 trillion was deducted at source for JV cash call and others, leaving the net amount of N3.49 trillion as transferred to Federation Account.
“During the period under consideration, a total of N8.82 trillion was generated. However, only N3.49 trillion (39.55percent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls. The Deductions at source by NNPC negate the principle of Federation Account,” it added.
From the report, DPR (now NUPRC) generated N3.53 trillion for the three years under review, with royalty payments accounting for N3.40 trillion (96.41percent). The agency however transferred N3.53 trillion to the Federation Account.
“The audit established that the surplus of N6.72 billion was as a result of unremitted receipts from prior year,” NEITI stated.