Nigeria Spent ₦1.16trn On Fuel Subsidy In 2021 – RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has revealed that Nigeria spent ₦1.16 trillion on petrol subsidies in 2021, while an additional ₦1.20 trillion was directly deducted from the federation’s crude oil sales proceeds.

RMAFC Chairman, Dr. Mohammed Bello Shehu, made the disclosure on Thursday in Abuja during a presentation before the Senate Public Accounts Committee (SPAC).

The committee, chaired by Senator Ibrahim Dankwabo (PDP, Gombe North), is currently probing the 2021–2023 oil and gas industry audit reports released by the Nigeria Extractive Industries Transparency Initiative (NEITI).

Giving a detailed breakdown of deductions from crude sales during the period under review, Shehu stated that petroleum subsidies were not the only major drain on national revenue.

According to him, crude and product losses swallowed ₦16.20 billion, pipeline repairs and maintenance cost ₦22.05 billion, while strategic stock holding accounted for ₦6.75 billion.

Shehu also raised concerns over the computation of the 13% derivation fund for oil-producing states, arguing that the existing formula undermines its original intent.

“The practice of computing 13% derivation on the balance of revenue after deductions from total collections is contrary to the intention of the derivation objective,” the RMAFC boss told lawmakers.

In related developments during the hearing, the Senate panel stood down the submission of the Niger Delta Development Commission (NDDC) to give committee members adequate time to study the agency’s report. The NDDC leadership is expected to reappear next Wednesday.

However, the committee expressed strong displeasure over the absence of the Auditor-General of the Federation (AuGF), who failed to attend the session or send an official representative.

Issuing a stern warning, Senator Dankwabo threatened to invoke constitutional powers to compel the Auditor-General’s attendance if he fails to show up on Tuesday.

“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk the invocation of powers of the National Assembly against him, which will lead to a forced appearance,” Dankwabo warned. (Daily trust)