The Nigerian Extractive Industry Transparency Initiative (NEITI) audit report has revealed that a total of 47 oil companies and the Nigerian National Petroleum Company Limited (NNPCL) failed to remit $ 8.26 billion in revenue to the federation account.
According to the report, these are collectible revenues due to the Nigerian Upstream Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS).
In its report officially unveiled in Abuja on Monday, NEITI revealed that 47 oil companies owed $ 1.34 billion while NNPCL $ 6.9 billion.
A compilation of the outstanding financial liabilities due to the Federation by the report indicated that a total of $13.591million in revenues was payable to the FIRS as of July 31, 2023, while the NUPRC had outstanding tax collectible revenues of $8.251bn as of December 31, 2022.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
In a breakdown, the report put the amount of revenue not remitted by State Owned Enterprise (SOE) at $1.951 billion, Quasi-fiscal expenditure by (SOE) $6.931 billion, Sub-national payments (Niger Delta Development Commission (NDDC), and Nigerian Content Development and Monitoring Board (NCDMB) $963.6 million, and remittances to federation at $13.2 billion.
Also, the report showed that the Federation earned $ 23.04 billion in 2021 with $ 13.2 billion or 57.27% of total revenue shared with the federating units after deductions.
This is about 13 percent higher than the corresponding total of $20.43bn realized in 2020.
A breakdown of the earnings showed that about $8.67bn, or 37.6 percent of the revenue was realized from the sale of crude oil and gas; $13.37bn, or 58.02 per cent, from taxes and other specific revenue flows, and $1.01bn, or 4.38 percent, went into payments to sub-national entities.
NEITI also drew attention to the practice of computing a 13% derivation on the balance of revenue after deductions from the total collections which it advised should be discontinued.
Rather, it said the 13% derivation should be based on total collections for the relevant period in accordance with Section 162(2) of the constitution of the Federal Republic of Nigeria.
While giving highlights of the report, Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji while presenting the highlights of the report stated that the information and data contained in the latest reports paid special attention to helping the government at all levels to shore up revenue, support national development and poverty reduction through resource mobilization.
He lamented that despite the concerted efforts made last year to recover some of the revenues through the Ad Hoc Committee that was set up by the National Assembly, the 2021 figures showed an increase.
Also, thee Secretary to the Government of the Federation, Senator George Akume represented by the Permanent Secretary, Political and Economic Affairs Mrs. Esuabana Nko while unveiling the report reaffirmed the federal government’s commitment to support and deepen the implementation of the EITI in Nigeria.
“As an Administration, we are convinced that the revival of our economy and the 8-point agenda that we recently unfolded cannot yield the desired result if we do not support and strengthen anti-corruption and reform-oriented agencies like NEITI,” the SGF said.
“The NEITI 2021 Industry Reports being unveiled is quite timely, coming when the present administration is fully committed to shoring up revenues through priority attention to attracting investments to the key sectors of our economy, the oil and gas sector being one of them.”
