VAT, mineral, non-mineral revenues makes up NEITI’s N28.58trn federation account remittance in five years

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the total amount remitted to the federation account between 2012 and 2016 is N28.58 trillion.

According to the organization major sources of the remittances came from mineral revenues, non-mineral revenues and value added tax (VAT).

NEITI said in a statement from Orji Ogbonnaya Orji, its director of communications and advocacy, that the information on the earnings was contained in its latest Fiscal Allocation and Statutory Disbursement (FASD) audit report for 2012-2016.

According to it, apart from remittances to the Federation Account, the audit tracked statutory allocations and their applications with specific focus on nine states, four interventionist agencies and five special funds.

It explained that the essence was to examine funds receipt and utilisation, adding that the nine states covered by the report are Rivers, Bayelsa, Akwa Ibom, Nasarawa, Delta, Ondo, Imo, Kano and Gombe.

The federal agencies covered included the Niger Delta Development Commission (NDDC), Petroleum Technology Development Fund (PTDF), Tertiary Education Trust Fund (TETFUND) and Petroleum Products Pricing Regulatory Agency (PPPRA), while the special funds were Natural Resources Development Fund (NRDF), Petroleum Equalisation Fund (PEF), Excess Crude Account (ECA), Ecological Fund (EF) and Stabilisation Fund (SF).

In its explanation, NEITI said the N28.58 trillion remitted to the Federation Account showed that monies from mineral resources, especially oil, contributed the highest sum of N18.15 trillion after deductions for joint venture cash calls and subsidy claims, followed by non-mineral sources’ N6.68 trillion contribution and VAT’s payment of N3.73 trillion.

The NEITI equally noted that a year-by-year breakdown of the total remittances showed that N4.19 trillion was remitted in 2012, N4.73 trillion in 2013 while in 2014, it was N4.69 trillion, in 2015, N2.89 trillion and N1.65 trillion remitted in 2016.

It said an analysis of the N18.16 trillion mineral revenues shared among the three tiers of government showed that the federal government received N8.32 trillion between 2012 and 2016; the 36 state governments shared N4.22 trillion while the 774 local governments got N3.25 trillion.

It added that this was, however, exclusive of N2.36 trillion earned by oil producing states as 13 per cent derivation payment.

The report also added that from the share of non-mineral revenues of N6.68 trillion, the federal government received N3.52 trillion, while the 36 states got N1.79 trillion and 774 local governments took N1.38trillion.

The total VAT revenue of N3.73trillion was also shared with the federal government taking N560 billion, the 36 states got N1.88 trillion and 774 local governments got N1.31 trillion.

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