Infostride News has reported that the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed a substantial revenue of ₦14.38 trillion generated by federal government agencies from the extractive sector. This information was shared by Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, during the presentation of the most recent Fiscal Allocation and Statutory Disbursement (FASD) report, spanning from January 2020 to December 2021, in Abuja.
Presenting the report was Mr. Shaakaa Chira, the Auditor General of the Federation, with Mr. Sundung James, the Director of Audits, representing him. The revenue-generating agencies encompassed in this report include the Nigerian National Petroleum Company Limited (NNPC Ltd), Nigerian Upstream Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), Ministry of Mines and Steel Development (MMSD), and the Nigeria Customs Service (NCS).
Orji highlighted the focus of NEITI’s FASD reports, emphasizing the analysis of transactions in the sector. Mineral revenue accounted for N6.40 trillion, constituting approximately 44.5% of the total remittances during the period. Additionally, other non-mineral revenue, excluding VAT, played a significant role, contributing N4.80 trillion, equivalent to around 33.37% of the total remittances.
The NEITI report delved into independent assessments of financial transactions, examining revenue receipts, payments, and the impact of processes on transparency and accountability in the oil and gas sector during the reviewed period. It also scrutinized the alignment of projects executed with capital projects and recurrent expenditure, ensuring harmony with the core responsibilities of the agencies, government expectations, and citizens’ expectations.
The audit covered four federal revenue-generating agencies and 11 beneficiary agencies responsible for managing funds related to extractive industries. Nine selected states, namely Akwa-Ibom, Bayelsa, Delta, Gombe, Imo, Kano, Nasarawa, Ondo, and Rivers, were included in the report. Beneficiary agencies encompassed entities such as the Petroleum Technology Development Fund (PTDF), Niger Delta Development Commission (NDDC), Nigerian Content Development and Monitoring Board (NCDMB), and the Nigeria Midstream and Downstream Petroleum Resources Agency (NMDPRA) – PEF– PRA. Others included the Tertiary Education Trust Fund (TETFund), Nigeria Sovereign Investment Authority (NSIA), Development of Natural Resources Fund (DNRF), Stabilization Fund, Ecological Fund, and the Excess Crude Account (ECA).
Shaakaa Chira, the Auditor General of the Federation, emphasized the significance of the FASD report in fulfilling the agency’s mandate as per Nigeria’s constitution. The report aids in conducting audits of federation revenue, encompassing collection, remittance, and disbursement. It also supports periodic checks of deductions and transfers occurring before remittances and facilitates the assessment of FAAC allocations.
Mr. Faruk Ahmed, Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulations Authority (NMDPRA), commended NEITI’s role in ensuring transparency in public and private sector businesses beyond the extractive industries. This acknowledgment underscores NEITI’s broader impact on promoting transparency and accountability in various sectors of the Nigerian economy.
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