By Abbanobi -Eku Onyeka
Abuja
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, has disclosed that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude sales proceeds within the same period.
Dr. Shehu made the disclosure on Thursday during his presentation to the Senate Public Accounts Committee (SPAC), which is probing the 2021–2023 audit reports on the oil and gas industry conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI).
He said aside from fuel subsidy, other deductions included crude and product losses of N16.20 billion, pipeline repairs of N22.05 billion, and strategic stock holding of N6.75 billion. The RMAFC boss also raised concerns over the computation of derivation revenue, stating that the current method undermines the objective of the 13% derivation principle.
“The practice of computing 13% derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he told the committee chaired by Senator Ibrahim Dankwambo (Gombe North).
The committee stood down the submission of the Niger Delta Development Commission (NDDC) to allow members study the report ahead of its reappearance next Wednesday. Senator Dankwambo expressed displeasure over the absence of the Auditor-General of the Federation at the investigative session without any valid representation.
He described the non-appearance as unacceptable, given the importance of the audit reports under review. The Senate committee chairman issued a stern warning that the Auditor-General must appear unfailingly on Tuesday next week.
“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of powers of the National Assembly against him, which will lead to forced appearance,” he said.
The post Nigeria spent N1.16tr on fuel subsidy in 2021 -RMAFC Chairman appeared first on THE AUTHORITY NEWS.