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FG Earns N28.02trn From Crude, VAT, Others, NEITI Confirms
A Fiscal Allocation and Statutory Disbursement (FASD) report published by the Nigeria Extractive Industries Transparency Initiative (NEITI), covering 2017-2019 has revealed that four Federal Government agencies generated N28.02trillion within the period under review.
From the figure, minerals revenue contributed N12.84trillion (56.61percent) while non-minerals revenue contributed N6.57trillion (28.97percent).
Value-added tax (VAT) accounted for N3.27trillion (14.42percent), while ¦ 19.01trillion mineral revenue was disbursed to the tiers of government.
The report also highlighted that states’ over-dependent on Federation Account has peaked, as it currently accounts for 71percent of their earnings.
The report also noted that 81percent of states allocations is spent on recurrent expenditure.
The N28.02trillion was generated by the Nigerian National Petroleum Corporation (NNPC); Federal Inland Revenue Services (FIRS); Department of Petroleum Resources (DPR) now Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Mines and Steel Development (MMSD).
Out of the amount, N22.68trillion was remitted to the Federation Account.
The cost of collection and Joint-venture cash calls deductions by revenue generating agencies accounted for the differences between revenue generated and remittance.
The NEITI’s FASD audit examined total extractive industry revenue remitted into the Federation Account, tracked allocation and disbursement from the account to statutory recipients as well as utilization and application of the funds by the beneficiaries between the years 2017-2019.
It also covered nine selected states: Akwa-Ibom; Bayelsa; Delta; Gombe; Imo; Kano; Nasarawa; Ondo and Rivers states.
On the nine selected states covered by the exercise, the report revealed that their combined revenues inflows within the three years period were N5.104trillion.
Breakdown showed that statutory allocation accounted for N3.55trillion, while internally generated revenue (IGR) and loans accounted for N1.33trillion and N227billion, respectively.
Further breakdown shows that Delta State recorded the highest revenue of N1.083trillion while Nasarawa State recorded the lowest revenue of N214billion.
The beneficiary agencies include: Niger Delta Development Commission (NDDC); Tertiary Education Trust Fund (TETFund); Petroleum Trust Development Fund (PTDF); Petroleum Equalization Funds (PEF); Ecological Fund (EF) and Stabilization Fund (SFs).
Others are: Nigerian Sovereign Investment Authority (NSIA); Development of Natural Resources Fund (DNRF); Excess Crude Account (ECA); Nigeria Content Development and Monitoring Board (NCDMB) and Petroleum Products Pricing Regulatory Agency (PPPRA).
The NEITI FASD report revealed that FIRS generated ¦ 13.48trillion within the period under review with Petroleum Profit Tax (PPT) accounting for N5.80trillion (43.09percent), while Value-Added Tax (VAT) and other taxes accounted for 32percent and 24percent, respectively. The service recorded highest revenue collection of N5.02trillion in 2018.
The report disclosed that a total sum of ¦ 8.82trillion was generated by NNPC within the period. Breakdown shows that ¦ 4.55trillion came from domestic crude sales, while export receipts accounted for ¦ 4.27trillion.
It further disclosed that ¦ 5.33trillion was deducted at source for JV cash call and others, leaving the net amount of N3.49trillion as transferred to Federation Account.
“During the period under consideration, a total of ¦ 8.82trillion was generated. However, only ¦ 3.49trillion (39.5percent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls. The Deductions at source by NNPC negate the principle of Federation Account”, NEITI’s report stated.
From the report, DPR (now NUPRC) generated ¦ 3.53trillion for the three years under review, with royalty payments accounting for N3.40trillion (96.41percent).
The agency, however, transferred ¦ 3.53trillion to the Federation Account.
The audit established that the surplus of ¦ 6.72billion was as a result of unremitted receipts from prior year.
Ministry of Mines and Steel Development (MMSD) generated ¦ 12.498billion within the three years period.
Breakdown show that Mining Inspectorate Department (MID) contributed N6.43billion while Mining Cadastral Office (MCO) accounted for N6.06billion.
From the total revenue generated by the Ministry, a sum of ¦ 7.56billion was shared to the three tiers of government in 2019.
On the NDDC, NEITI report revealed that ¦ 755.96billion was generated by the commission within the period under consideration.
Breakdown shows that N551.08billion (73percent) was contributed by oil and gas companies, while the balance of ¦ 203.90billion (27percent) was the Federal Government’s contribution to the commission.
The report further revealed that the total expenditure by the commission during the period under review was N882.3billion.
Analysis of the expenditure shows that N778.29billion (88.20percent) was expended on development projects, while operational cost accounted for N104.07billion (11.80percent) of the total.
Analysis of project execution in member states ranks Delta State highest in terms of development projects undertaken by the commission to member states with total expenditure of ¦ 40.46billion (26percent) of the actual expenditure within the period, while Edo received the lowest development projects of about 5percent.
NEITI audit established that there was a gap between actual development projects expenditure as per audited financial statements and project monitoring list provided by the commission in the sum of ¦ 522.60billion.
“While N679billion was reported in NDDC’s financial statement, the project monitoring list reported expenditure of N157billion on physical projects among the nine member states”, NEITI audit report revealed.
The report, however, disclosed that 40 oil and gas companies defaulted in their payment obligation to the commission.
It also disclosed that the commission did not receive any monies from the Ecological Fund as stipulated by the law throughout the three years under review, this obviously negatively affected revenue inflow into the commission within the period.
On the Tertiary Education Trust Fund (TETFund), NEITI reported that the fund realised N644.19billion within the three years under review.
The NEITI report established that the actual funds available for disbursement by TETFund in the three years period was ¦ 624.32billion.
The report also disclosed that the sum of ¦ 102.14billion (46.55percent) was disbursed to the universities, while ¦ 46.12billion (21.35percent), ¦ 49.97billion (21.97percent) and ¦ 27.09billion (10.12percent) were disbursed to Polytechnics, Colleges of Education and other tertiary institutions programmes, respectively.
NEITI noted that the process of accessing the fund is cumbersome, and called on TETFund to simplify the process to enable more universities access the funds.
Petroleum Technology Development Fund (PTDF) revenue for the period under review was put at ¦ 155.34billion and 95percent came from signature bonus paid by oil and gas companies which is the main revenue source to the agency.
NEITI report reveals that out of ¦ 86.34billion utilised by the agency within the period under review, ¦ 59.84billion was spent on core operating expenses while ¦ 26.35billion and ¦ 143million was for personnel/administrative expenses and capital, respectively.
The report noted that the PTDF extended funding to 125 approved institutions, 43 locals and 82 foreign institutions.
According to the NEITI report there was low expenditure compared with the revenue released during the years under review as only 56percent of revenue was utilised.
The NEITI report put total receipts by Nigeria Content Development and Monitoring Board (NCDMB) for the three years under review at ¦ 126.73billion.
It noted that one percent Nigerian Content Development (NCD) payment accounted for N116.95billion (92percent) of the revenue.
The Federal Government stopped funding the agency from its budget in 2017.
According to the report, 48.07percent of the revenue was used for operating expenses while 51percent was used for capital expenditure.
The Nigerian Sovereign Investment Authority (NSIA), NEITI report disclosed that the total financial flows for the three year period were ¦ 1.33trillion.
Breakdown shows that the sum of ¦ 76.28billion was contributed by the government to the funds in 2017, while the sum of $250million was approved by National Economic Council (NEC) in 2019 but the money was remitted to the authority in August, 2020.
The report also revealed that NSIA’s investment fund witnessed phenomenal increase of 71percent within the three years under review to the sum of ¦ 946.36billion and noted that the return on capital employed for the Stabilization Fund (SF), Future Generations Fund (FGF) and Nigeria Infrastructural Fund (NIF) were 8.68percent, 7.21percent and 5.40percent, respectively.
NEITI report disclosed that Petroleum Product Pricing Regulatory Authority (PPPRA) received a total of N27.68billion as Federal Government subvention for the three years period.
It noted that the regime of subsidy payment on petroleum product was discontinued within the period under review.
The Ecological Fund (EF) recorded a total sum of ¦ 170.15billion during the period under review with statutory allocation accounting for the 93.43percent of the total revenues.
NEITI report reveals that North-Central received the highest projects in the sum of ¦ 36.08billion, while South-South received the lowest projects delivered amounting to N10.93billion.
The report also revealed that National Emergency Management Agency (NEMA) received ¦ 34.04billion from the fund.
From the report, total receipts accrued to the Stabilization Fund (SF) during the period under review were ¦ 85.10billion.
Breakdown shows that Statutory Allocation contributed 93.44percent, while other receipts accounted for 6.56percent.
NEITI reports disclosed that significant proportion of the fund during the period under review went into budget augmentation which was mainly disbursed to the states, noting that the 25percent transfers to NSIA fulfil the Fund’s statutory requirement to be set aside for investment purpose.
The report further noted that N17.4billion was transferred from the Fund in 2019 to African Union (AU) as Nigeria’s share of contribution to the body.
This transfer accounted for 19.74percent of the total disbursement from thefFund during the period under review.
The report also noted that expenses related to Federation Account Allocation Committee (FAAC) meetings and professional fees accounted for 8percent of the total fund outflows.
On Development of Natural Resources Fund (DNRF), the report revealed that the fund’s total receipts within the period under review were N284.92billion.
It noted 93.77percent of it came from statutory allocation.
The total disbursement from the fund was N312.01billion.
Disbursements to Federal Ministry of Water Resources and capital projects accounted for 44percent and 16percent, respectively.
Furthermore, the sum of N34.08billion was transferred to NEMA in 2019 which represented 11percent of total disbursement of the fund.
NEITI report revealed that not all receipts to the fund were utilised for the purpose for which the fund was established.
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Fubara Frowns At Slow Pace Of Ndele–Omofo–Egmini–Agba-Ndele Road Project ….Says Contract May Be Reviewed
Rivers State Governor, Sir Siminalayi Fubara, has expressed dissatisfaction over the slow progress of work on the 14.5-kilometer Ndele/Omofo/Egamini/Agba-Ndele Road project located off the East–West Road in Emohua Local Government Area.
Addressing newsmen during an inspection tour of the project on Tuesday, the Governor noted that the pace and quality of work being delivered by the contracting firm, Messrs Stream Co. & Equipment Limited, fell below acceptable standards.
He was accompanied on the tour by the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart, who briefed the Governor on the status of the project and adjoining infrastructure.
Governor Fubara, who appeared visibly unsatisfied with what he saw on the stretch of the road, said his administration would not condone mediocrity or allow public funds to be wasted on underperforming projects. He, therefore, hinted that a review of the contract may be imminent to ensure the delivery of quality infrastructure to the people.
“I can say here already that the contractor handling the road from the bridge to the East–West Road is not doing a good job. I’m not happy about it. When I get back, there will be a need to review that contract because I’m not impressed. They don’t have the capacity, and we need capacity because we must have value for whatever money we’re spending,” the Governor said.
The Governor, however, commended Setraco Nigeria Limited for the standard and pace of work on the 240-meter Agba-Ndele/Abua Bridge, which forms a major component of the project. He explained that the bridge, which his administration inherited, would significantly improve connectivity among communities in the area once completed.
Governor Fubara stated that the bridge will serve as a key link between communities in Abua/Odual, Ahoada-East, and Emohua Local Government Areas, reducing travel time and providing an alternative route to the East–West Road.
He emphasised that the project demonstrates his administration’s commitment to rural connectivity and inter-community access, which are central to his development vision for Rivers State.
“Where we are standing on is a bridge connecting Abua/Odual, Ahoada-East, and Emohua Local Government Areas. The community that is connected to this bridge is Agba-Ndele.
“Instead of running through the East–West Road to Ahoada-East and heading into Port Harcourt or out of it, this bridge provides easy access for the Abua/Odual people to cross into Emohua, Agba-Ndele, and access the East–West Road in minutes,” he explained.
Governor Fubara also expressed optimism that the bridge would be ready for use in early 2026, noting that Setraco’s expertise and performance met his administration’s expectations for quality and delivery timelines.
He highlighted that projects of such importance should be handled by firms with the capacity to meet government standards.
The Governor further remarked that once completed, the bridge would serve as a crucial economic corridor for farmers and traders, especially those involved in agriculture and cultivation of local produce across the beneficiary local government areas.
He maintained that his administration is determined to deliver people-oriented projects that promote connectivity, strengthen commerce, and enhance livelihoods across the State.
“I’m really impressed with what I’ve seen on the bridge. I’m very sure that before the end of January, it might be completely ready for us to walk through and even drive across,” Governor Fubara said.
Reaffirming his vision for Rivers people, the Governor noted that his development plan seeks to integrate all parts of the State through strategic infrastructure investments that promote mobility, social cohesion, and economic growth.
He explained that his government is executing projects across multiple local government areas to ensure balanced development and inclusivity.
Governor Fubara stated that the administration will soon address the deplorable state of the Abua/Ahoada Road, which he said, will be included in the 2026 state budget.
“Our vision is to connect the entire Rivers State together, especially communities that have challenges of access. The bridge here connects Abua/Odual and Ahoada-East to Emohua and Port Harcourt. It will ease movement, promote trade, and boost our economy because agriculture is strong on this side. Moving goods to the city won’t be a problem anymore,” he said.
Governor Fubara reiterated his administration’s commitment to delivering quality infrastructure that provides value for public funds and meets the aspirations of Rivers people.
Rivers State Governor, Sir Siminalayi Fubara, has unveiled plans to permanently relocate the dumpsite along the busy Port Harcourt Airport–Obiri-Ikwerre Road, describing the current location as both a public health threat and a damaging first impression for visitors arriving in Port Harcourt, the State capital.
The Governor made this known on Tuesday during an inspection of a proposed replacement site, which is a disused burrow pit near Bambo Estate, off Eneka Road in Igwuruta, Ikwerre Local Government Area.
The location is being assessed as a potential permanent dumpsite for the State.
Governor Fubara, who was conducted by the Board Chairman, Rivers State Waste Management Agency (RIWAMA), Dr Samuel Nwanosike, and its Managing Director, Dr Ibimina Wokoma, expressed concern about the environmental and health challenges posed by the existing site, which sits along a major entry point into the State.
“The kind of environmental hazards that we are facing there along the Airport–Obiri- Ikwerre Road; the smell on that road being the entrance into the State, we felt it’s not proper,” he said. “So, we are making alternative arrangements so we can have a permanent refuse dumpsite that meets acceptable standards.
“He added that the government would move swiftly to formalise ownership of the land and complete construction work on the access road to make the new site functional.“We have not concluded the issue of the burrow pit, but the access road, I think the government is doing something about it.
So, I will make sure that everything that needs to be done to ensure government owns this burrow pit is done,” he stated.
Governor Fubara also commended the Rivers State Waste Management Agency (RIWAMA) for what he described as a more assertive and improved approach to managing refuse across the State.In addition to the dumpsite inspection, the Governor also visited the Permanent Secretaries’ Quarters located in Elimgbu Town, Obio/Akpor Local Government Area, to assess the extent of ongoing construction work on the facility.
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.
Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.
Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.
“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”
Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.
He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.
“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.
“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.
The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.
He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.
“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.