The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that a whopping N14.38 trillion was sent to the Federation Account between 2020 and 2021. Dr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, spilled the beans on this jaw-dropping figure during the grand unveiling of the 2020-2021 NEITI Fiscal Allocation and Statutory Disbursement (FASD) Industry Report in Abuja. According to him, the total revenue remitted to the Federation Account for this period was N14.38 trillion. Mineral revenue took the lead, contributing a staggering N6.40 trillion, which makes up 45% of the total revenue remitted. On the other hand, other non-mineral revenue (excluding VAT) chipped in with N4.80 trillion, accounting for 33% of the total revenue remitted. In a nutshell, the Federation Account saw a 14% increase in remittance between 2020 and 2021.
Dr Orji also mentioned that a total of N859.66 billion was snipped off as 13 per cent derivation and shared among the nine oil-producing states. During the same period, a hefty N5.42 trillion was doled out to the three tiers of government. The breakdown of this distribution saw the Federal Government pocketing N2.80 trillion, while the states and local government areas received N1.45 trillion and N1.17 trillion respectively. Furthermore, 2021 emerged as the year with the highest revenue distribution across the board, showing a 2% increase between 2020 and 2021.
When it comes to disbursing funds to universities on a zonal basis, NEITI’s bigwig revealed that a total of N249.71 billion was handed out to universities. Interestingly, universities in the North received a larger share of the pie compared to their counterparts in the South. The North-Central, North-East, and North-West bagged 22.85%, 18.78%, and 17.79% respectively, while the South-South, South-West, and South-East received 14.19%, 13.43%, and 12.95% respectively.
Dr. Orji highlighted NEITI’s keen interest in the information and data on shared or allocated revenues, emphasizing their role in addressing national development issues, particularly poverty reduction. The report delves into FAAC allocations to the three tiers of government, statutory recipients, and sixty-nine companies. It also tracks revenues from the Oil, Gas, and Mining Industry, focusing on their utilization.
The NEITI 2020-2021 Fiscal Allocation and Statutory Disbursement Report aims to empower citizens with essential information and data, shedding light on how revenues from the extractive sector shape our lives, reduce poverty, and contribute to national development. It also exposes citizens to the challenges, gaps, and process lapses in ensuring the efficient utilization of these revenues.
The report examines the revenues generated in the sector and remitted to the Federation Account, as well as the allocation and disbursements of these revenues to statutory recipients within the tiers and levels of government. It also analyses how these revenues were utilized and applied by the beneficiaries to address their increasing demands. Additionally, it discloses the revenue generated and remitted to the Federation Account by revenue-generating agencies, along with the allocation and disbursements to local, state, and federal governments, statutory agencies, and beneficiaries for the period 2020-2021.
Key agencies at the heart of the report include the Ministry of Mines and Steel Development, Nigeria National Petroleum Company Ltd, and the Federal Inland Revenue Service. The report also sheds light on the disbursements to eleven beneficiary agencies, such as the Niger Delta Development Commission, Tertiary Education Trust Fund, Petroleum Technology Development Fund, and others. However, the report clarifies that the Nigerian Customs Service’s generation and remittance of revenue into the Federation Account is not covered by the scope of this audit.