November 10, 2023

FG earns N14.4tn from extractive sector – NEITI

Executive Secretary, Nigeria Extractive Industries Transparency Initiative, Dr Orji Ogbonnaya-Orji

The Nigeria Extractive Industries Transparency Initiative has said that the Federal government revenue-generating agencies remitted a total of about N14.4tn as revenue from the extractive sector to the Federation Account between January 1, 2020, and December 31, 2021.

Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, while presenting the latest Fiscal Allocation and Statutory Disbursement report released by the organisation on Thursday, said the revenue-generating agencies include the Nigerian National Petroleum Company Limited, the Nigerian Upstream Regulatory Commission, the Federal Inland Revenue Service, the Ministry of Mines and Steel Development, and the Nigeria Customs Service.

A breakdown of the remittances showed that mineral revenue accounted for N6.40tn (about 44.5 per cent of total remittances) for the period, while other non-mineral revenue (excluding Value Added Tax) contributed N4.80tn (about 33.37 per cent of total remittances).

The report, which is the fourth in the audit cycle, revealed that overall remittances to the Federation Account for the period increased by about 14 per cent.

Other findings in the report stated that out of a total Mineral Revenue of N6.40tn, the Department of Petroleum Resources now the Nigerian Upstream Petroleum Regulatory Commission accounted for the highest contribution of about N2.71tn, or 18.83 per cent of the total remittances, followed by FIRS with N2.13tn, or 14.81 per cent, and the Nigerian National Petroleum Company with N1.5tn, or 10.8 per cent, while the least contribution was from the Solid Mineral with N13.3bn, or 0.09 per cent.

The report revealed that the contribution by the NNPC declined significantly by 56 per cent, along with the federal Inland Revenue Service, whose contribution also dropped by 10 per cent.

The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021.

Similarly, non-mineral revenue of about N4.80tn (or 33.37 per cent of total remittances, increased by N3.86bn from 2020 to 2021, with the highest contribution of N2.69tn, or 18.71 per cent coming from the Company Income Tax, followed with N2.025tn, or 14.08 per cent from the Nigeria Customs Service and N85.25bn, or 0.59 per cent from other tax sources.