Home News / N30.09trn remitted to Federation Account between 2007- 2011– NEITI

/ N30.09trn remitted to Federation Account between 2007- 2011– NEITI


ABUJA – The Nigeria Extractive Industry Transparency Initiative (NEITI) On Wednesday said N30.09 trillion was remitted into the Federation Account between 2007 and 2011 from mineral and non-mineral revenues.

The NEITI Chairman, Mr Ledum Mitee, made this known at the public presentation of Independent Audit Reports of 2007 to 2011 Fiscal Allocation and Statutory Disbursement (FASD) audit in Abuja.

Mitee said the audit established that mineral and non-mineral revenues were two major revenue streams that flow into the Federation Account through the office of Account General of the Federation.

He said that mineral revenue remittances account for N23.7 trillion (less joint Venture Cash Calls and Nigerian National Petroleum Corporation subsidy claims), while non-mineral revenues stood at N4.01 trillion.

The chairman said that during the same period, the country earned N2.3 trillion from the Value Added Tax.

“From the Report, total transfer to Excess Crude Account (ECA) between 2007 and 2011 stood at N8.53 trillion with the highest transfer of N3.15 trillion was recorded in the year 2011.

“The report indicated that transfers to ECA dropped below one trillion naira in year 2009, recording only N339.54 billion in the whole year.

“The report further disclosed that N31.15 billion was reported by Federal Allocation Committee as under remittance of funds by NNPC in December 2011.

“We have confirmations that NNPC made remittances in February 2012, while the NNPC cited nationwide strike at the same time as reason for delay before the audit window closed,” he said.

He said that the fiscal allocation statutory disbursement audit also revealed that the total oil and gas revenue to the federal, state, local governments was N22.35 trillion.

Mitee said the beneficiaries of the 13 per cent derivation also shared in the sum within the period under review.

He said the breakdown showed that N9.75 trillion was disbursed in 2007, N5.42 trillion in 2008, while N4.28 trillion and N2.80 trillion were disbursed in 2009 and 2010, respectively.

The chairman said the report also showed that there was a general allocation of N7.44 billion to the nine state offices of the Niger Delta Development Company (NDDC).

The amount, he said, was shared to the commission for the completion of their projects.

“It highlighted that most of projects were neither identifiable nor scheduled for monitoring and proper management.

“The report observed that the NDDC enabling Act is silent on the issue of how the budgets of the oil producing companies are obtained by the commission,” he said.

He said the report further showed that Petroleum Pricing Products Regulatory Agency paid the subsidy on Household Kerosene between 2007 and 2007.

He, however, noted that no such payment was made for the product in 2010 and 2011.

Mitee said subsidy was paid by Debt Management Office as a result of which the agency’s account was not funded in 2011.

“It is underestimated that NNPC deducts its subsidy payment at source from domestic crude sale,” he said

The report, he said, showed that the NDDC received N593.96 billion between 2007 and 2011 and spent N459.24 billion on recurrent and capital projects.

He said the report revealed that the share of Derivation and Ecology Fund stood at N164 billion between 2007 and 2011, while receipt from excess crude account stood at N53 billion.

He said the report disclosed that the total signature bonus collected by the Federal Government between 2007 and 2011 was N109.67 billion.

The chairman said the Petroleum Technology Development Fund was paid N77.87 billion, leaving a deficit of N31.8 billion owed the agency.

The report, according to him, called for the intervention of the Federal Government to ensure that subsidy payments were made through the CBN from the Petroleum Support Fund.

Mitee also called for an independent audit to be conducted on all subsidy claims made by petroleum marketers and NNPC.

The report, however, recommended that NNPC should remit its Domestic Crude Oil and gas sale in currency that the sales were made. (NAN)

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