Fuel Subsidy gulped N1.16trn in 2021 - RMAFC

Nigeria incurred a staggering N1.16 trillion expenditure on fuel subsidies in 2021, revealed Dr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

Shehu presented these figures in Abuja to the Senate's Public Accounts Committee (SPAC), which is currently probing the 2021-2023 audit reports for the oil and gas industry, conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI). Beyond the fuel subsidy, the commission reported that crude and product losses amounted to N16.20 billion, pipeline repairs cost N22.05 billion, and strategic stock holding reached N6.75 billion during the same period.

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The practice of computing 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective.

Furthermore, Shehu informed the committee that the intended objective of the 13 percent derivation fund was undermined by its computation method. "The practice of computing 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective," he stated.

The committee, chaired by Sen. Ibrahim Dankwambo, postponed the Niger Delta Development Commission's (NDDC) submission to allow members to study the report before a reappearance on August 12. Senator Dankwambo expressed strong disapproval regarding the absence of the Auditor-General of the Federation from the investigative session without a valid reason. He issued a stern warning, threatening to compel the Auditor-General's appearance next Tuesday through the National Assembly's powers if he fails to attend voluntarily.

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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