The Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, revealed that N14.38 trillion was remitted into the federation account between 2020 and 2021.
During this time, N5.42 trillion was distributed among the three levels of government. The Federal Government received N2.8 trillion, while the states and local governments received N1.45 trillion and N1.17 trillion, respectively.
The Executive Secretary of the agency, Dr. Orji Ogbonnaya Orji, made the disclosure in Abuja at the unveiling of the 2020-2021 NEITI Fiscal Allocation and Statutory Disbursement (FASD) Industry Report.
According to him, out of the N14.38 trillion, remittances from the mineral sector contributed the highest revenue of N6.4 trillion, representing 45% of total revenue remitted. Other non-mineral revenue (excluding VAT) contributed N4.8 trillion (33% of total revenue remitted). Summarising the development, he said the federation account witnessed a 14% increase in remittance between 2020 and 2021.
The NEITI boss further revealed that N859.66 billion was deducted as 13 per cent derivation and distributed among the nine oil-producing states.
He added that in the reporting period, 2021 was registered as the year with the highest revenue distribution across the board, which shows two per cent increase between 2020 and 2021.
On disbursements to universities on a zonal basis, the NEITI boss said that the total amount disbursed to universities is N249.71 billion. He explained that universities in the North received more disbursements than those in the South, as North-Central, North-East and North-West received 22.85%, 18.78% and 17.79% respectively compared to the 14.19%,13.43% and 12.95% received by South-South, South-West and South-East respectively.
Dr. Orji explained that NEITI is particularly interested in the information and data on the revenues either shared or allocated and how both helped the government at all levels to address the numerous national development issues especially, poverty reduction.
He stated that the report covered FAAC allocations to the three tiers of government and other statutory recipients including those agencies that received allocations and a total of 69 companies.
He also said that the report tracks revenues derived from the oil, gas and mining industry with a specific focus on utilisation.
The report read in part: “The report further seeks to empower citizens with basic information and data to help them understand how revenues from the extractive sector contribute to shaping our lives, reducing poverty, and developing the nation.
The report also exposes the citizens to the challenges, gaps and process lapses in ensuring the efficient utilization of these revenues.
“The NEITI 2020-2021 Fiscal Allocation and Statutory Disbursement Report examined the revenues generated in the sector and remitted to the Federation Account. It also reviewed the allocation and disbursements of the revenues from the Federation Account to statutory recipients within the tiers and levels of government and conducted an analysis of how these revenues were utilized and applied by the beneficiaries to address the increasing demands of the recipients and beneficiaries.
“The report also disclosed the revenue generated and remitted to the Federation Account by revenue-generating agencies, as well as the allocation and disbursements to local, state, and federal governments, statutory agencies, and beneficiaries for the period 2020-2021.
“Key agencies at the centre of the report include the Ministry of Mines and Steel Development, Nigeria National Petroleum Company Ltd, and the Federal Inland Revenue Service.
“On disbursements, eleven beneficiary agencies were reported. The agencies were the Niger Delta Development Commission, Tertiary Education Trust Fund, Petroleum Technology Development Fund, Petroleum Equalization Fund (Management) Board, Petroleum Product Pricing and Regulatory Agency, Nigeria Content Development and Monitoring Board.