The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that revenue-generating agencies of the Federal government remitted a total of approximately N14.4 trillion to the Federation Account from the extractive sector between January 1, 2020, and December 31, 2021. NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, presented the findings in the latest Fiscal Allocation and Statutory Disbursement report released on Thursday.
The contributing agencies encompassed 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.
The remittances were categorized into mineral revenue, accounting for N6.40 trillion (about 44.5% of total remittances), and other non-mineral revenue (excluding Value Added Tax), contributing N4.80 trillion (about 33.37% of total remittances).
In the fourth audit cycle report, NEITI highlighted a notable 14% increase in overall remittances to the Federation Account during the specified period. However, the report also indicated a substantial decline in contributions from the Nigerian National Petroleum Company Limited (NNPC) by 56% and the Federal Inland Revenue Service, which experienced a 10% reduction.
The findings underscore the significant role of the extractive sector in contributing to the government’s revenue and the broader economy. NEITI’s report provides valuable insights into the financial dynamics of the extractive sector, shedding light on the distribution of resources and highlighting areas that may require attention or improvement.