The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) emerged as the primary contributor to the 2020-2021 mineral revenue, accounting for a significant N2.71 trillion of the total N6.40 trillion, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).
In its most recent Fiscal Allocation and Statutory Disbursement (FASD) report spanning 2020-2021, NEITI highlighted that the NUPRC, previously recognized as the Department of Petroleum Resources (DPR), accounted for 18.83 per cent of the overall remittances.
During the report unveiling in Abuja, Dr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, highlighted that the Federal Inland Revenue Service (FIRS) trailed NUPRC, contributing N2.13 trillion, equivalent to 14.81 per cent.
The NEITI’s FASD Report for 2020-2021 looked at the remittance of total revenue from extractive industries to the Federation Account.
It precisely tracked the allocation and disbursement of funds from the account to statutory recipients, as well as the utilization and application of funds by beneficiaries.
Orji highlighted that the Nigerian National Petroleum Company Limited (NNPC Ltd) made a substantial contribution of N1.55 trillion, accounting for 10.8 per cent of the total.
In contrast, the solid minerals sector had the lowest contribution at N13.33 billion, representing a mere 0.09 per cent.
- “The report revealed that the contribution by the NNPC Ltd declined significantly by 56 per cent, along with the FIRS, whose contribution also dropped by 10 per cent.
- “The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021,” he said.
More on the Report
Similarly, the report indicated that non-mineral revenue of about N4.80 trillion (or 33.37 per cent of total remittances, increased by N3.86 billion from 2020 to 2021.
- “The highest contribution of N2.69 trillion, or 18.71 per cent came from the Company Income Tax (CIT), followed by N2.025 trillion, or 14.08 per cent from the Nigeria Customs Service (NCS), and N85.25 billion, or 0.59 per cent from other tax sources.
- “As the revenue from CIT in 2021 declined by 5.25 per cent from 2020, the revenue realized by the NCS in 2021 increased by 40.55 per cent while other taxes significantly recovered from a deficit in 2020 to a positive balance in 2021,” Orji added.
Accordingly, Orji reported a substantial 84% surge in remittances from royalty and other fee payments from DPR, while MMSD (solid minerals) saw a notable increase of 43% for the corresponding years.
According to him, receipts from VAT, which increased significantly for the two years, resulted in the remittance of N3.18 trillion or 22.1 per cent of total remittances to the Federation Account, while revenue generated by NCS increased by 41 per cent.
Disbursement to the three tiers of government
In addition, the report revealed that N5.42 trillion in mineral revenue was divided among the Federal Government, State, and Local Governments within the reviewed timeframe.
- “In terms of disbursements to the three tiers of government, the report showed that a total of about N5.42 trillion was distributed to the Federal, State, and Local Governments for the period.
- “A total of N859.66 billion was deducted as 13 per cent derivation and shared among the nine oil-producing states after the deduction of excess petroleum profit tax (PPT) and Royalty.
- “The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.
- “A breakdown of the disbursements showed that while the Federal Government received about ₦2.80 trillion, the 36 state governments got ₦1.45 trillion, and the 774 Local Government Areas received a total of ₦1.17 trillion,’’ Orji said.
The executive secretary said the report noted 2021 as the year with the highest revenue distribution across the board, with a two per cent increase between 2020 and 2021.
VON
https://von.gov.ng/petroleum-commission-contributes-n2-71tn-mineral-revenue-in-one-year-neiti/
