Nigeria spent about N1.16 trillion on fuel subsidy in 2021, the Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Shehu, has disclosed.
Shehu made this known on Thursday in Abuja while briefing the Senate Public Accounts Committee (SPAC), which is reviewing audit reports on the oil and gas sector from 2021 to 2023 conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI).
According to him, an additional N1.20 trillion was deducted from crude oil sales revenue within the same period. He also listed other cost components, including N16.20 billion for crude and product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holdings.
Shehu raised concerns over the computation of the 13 percent derivation revenue, stating that the current method undermines its intended purpose. He explained that calculating the derivation from the balance after deductions, rather than total revenue, contradicts the principle behind the policy.
Meanwhile, the committee deferred consideration of the Niger Delta Development Commission (NDDC) submission to allow members to review the report ahead of its next appearance on August 12.
Committee Chairman, Senator Ibrahim Dankwambo, also criticized the absence of the Auditor-General of the Federation at the session, warning that failure to appear at the next hearing could result in enforcement action by the National Assembly.
He said the Auditor-General must attend the next sitting or face compulsory summons.
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