NEITI Reveals N14.4tn Extractive Sector Remittance to Federation Account in Two Years

The Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed that federal government revenue-generating agencies remitted approximately N14.4tn to the Federation Account from the extractive sector between January 1, 2020, and December 31, 2021.

NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, presented the Fiscal Allocation and Statutory Disbursement report, indicating that agencies like the Nigerian National Petroleum Company Limited, Nigerian Upstream Regulatory Commission, Federal Inland Revenue Service, Ministry of Mines and Steel Development, and Nigeria Customs Service contributed to the remittances.

Mineral revenue accounted for N6.40tn, constituting 44.5% of total remittances, while other non-mineral revenue, excluding Value Added Tax, contributed N4.80tn, making up 33.37%.

The report, the fourth in the audit cycle, highlighted a 14% overall increase in remittances to the Federation Account for the specified period.

Among the findings, the Nigerian Upstream Petroleum Regulatory Commission, formerly the Department of Petroleum Resources, led with a contribution of about N2.71tn, followed by FIRS with N2.13tn.

The NNPC’s contribution declined by 56%, attributed to a decrease in revenue from crude oil exports in 2021.

Non-mineral revenue increased by N3.86bn, with the Company Income Tax leading contributions, followed by the Nigeria Customs Service and other tax sources.

The report provides comprehensive insights into the extractive sector’s financial dynamics, reflecting shifts in contributions and challenges faced by revenue-generating entities.