Nigeria spent N1.16 trillion on fuel subsidy in 2021, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, has disclosed.
Shehu made the disclosure on Thursday in Abuja while appearing before the Senate Public Accounts Committee (SPAC), which is investigating audit reports on Nigeria’s oil and gas sector covering 2021 to 2023.
He said N1.20 trillion was also deducted from the Federation’s crude oil sales proceeds during the period.
According to the RMAFC chairman, other deductions included N16.20 billion for crude oil and petroleum product losses, N22.05 billion for pipeline repairs and N6.75 billion for strategic stockholding.
Shehu also questioned the manner in which the 13 per cent derivation revenue was calculated, saying the practice undermined the objective of the policy.
READ ALSO: FG Finalises ₦4 Trillion Bond Framework to Clear Power Sector Debts
He explained that calculating the derivation share from the revenue left after deductions from total collections was inconsistent with the purpose of the derivation principle.
Meanwhile, the committee, chaired by Senator Ibrahim Dankwambo, deferred consideration of the Niger Delta Development Commission’s submission to allow members to review the report before its next appearance on 12 August.
Dankwambo also criticised the absence of the Auditor-General for the Federation from the investigative hearing, describing the non-appearance as unacceptable.
He directed the Auditor-General to appear before the committee on Tuesday, warning that failure to do so could lead to the National Assembly invoking its powers to compel his attendance.
