The Nigeria Extractive Industries Transparency Initiative (NEITI) has published its latest report on the Fiscal Allocation and Statutory Disbursement (FASD) for the period 2020 and 2021.
The report shows that the revenue contributions of the Nigerian National Petroleum Company (NNPC) and the Federal Inland Revenue Service (FIRS) to the Federation Account fell by 56 per cent and 10 per cent respectively, due to the lower crude oil exports in 2021.
The report also reveals that the federal government revenue generating agencies remitted about N14.38 trillion from the extractive sector to the Federation Account. These agencies included the NNPC, the Nigerian Upstream Regulatory Commission (NUPRC), the FIRS, the Ministry of Mines and Steel Development (MMSD), and the Nigeria Customs Service (NCS).
The report breaks down the remittances into mineral and non-mineral revenues. Mineral revenue amounted to N6.40 trillion, or 44.5 per cent of the total remittances, with the NUPRC, the FIRS, and the NNPC as the top contributors, while solid mineral had the least contribution.
Non-mineral revenue was N4.80 trillion, or 33.37 per cent of the total remittances, with the Company Income Tax (CIT) and the NCS as the main sources, while other taxes had the lowest share.
The report notes that the revenue from CIT decreased by 5.25 per cent, while the revenue from the NCS increased by 40.55 per cent between 2020 and 2021.
The report also examines the disbursements of the revenue to the three tiers of government: the federal, state, and local governments. The report states that the total distribution was about N5.42 trillion, with the federal government receiving N2.80 trillion, the 36 state governments receiving N1.45 trillion, and the 774 local government areas receiving N1.17 trillion.
The report adds that N859.66 billion was deducted as 13 per cent derivation and shared among the nine oil producing states, which are Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
The report further analyses the disbursements to the states by geopolitical zones. The report shows that the South-South zone received the highest allocation of N1.37 trillion, or 29.53 per cent of the total revenue, followed by the North-West zone with N830.078 billion, or 17.85 per cent.
The South-East zone had the lowest allocation of N509.59 billion, or 10.96 per cent. The report also highlights the states with the highest and lowest allocations within each zone. For example, Lagos, Oyo, and Ondo were the top recipients in the South-West zone, while Osun had the least allocation.
The report also covers the additional revenue from other sources such as exchange gain, excess crude, other non-mineral, solid mineral, and NNPC refunds.
The report says that a total of N972.705 billion was distributed among the three tiers of government from these sources. The report aims to provide an independent assessment of the financial transactions in the extractive sector and how they affect the transparency and accountability of the revenue management.