Revenue Agencies Remit N14.38trn To Federation Account In 2 Years – NEITI

The Federation Account received total revenue of N14.38 trillion in 2020 and 2021 with the minerals sector contributing N6.4 trillion or 45 per cent of total revenue remitted and the non-minerals sector contributing N4.8 trillion or 33 per cent of the total revenue, the Nigeria Extractive Industries Transparency Initiative, NEITI has reported.

NEITI in its 2020-2021 Fiscal Allocation and Statutory Disbursement Audit report unveiled yesterday in Abuja said the Federation Account revenue increased by 14 per cent during the period. A breakdown showed that while N6.7 trillion was received in 2020, revenue rose to N7.6 trillion in 2021.

The report stated that revenue from value-added tax, VAT, during the period was N3.18 trillion or 22 per cent of the total revenue remitted to the Federation Account.

In terms of disbursement, the report disclosed that N859.6 billion was deducted and distributed to the nine oil-producing states while the Federal Government received N2.8 trillion with states and local governments getting N1.45 trillion and N1.17 trillion respectively.

On a state-by-state basis, the Delta led recipients with N370 billion followed by Rivers (N298.68 billion) and Akwa Ibom (N281.78 billion).

Speaking at the unveiling of the report, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji explained that the report covered FAAC allocations to the three tiers of government and other statutory recipients including those agencies that received allocations.

“The report reviewed processes that characterised all transactions within the sector. It looked at an independent assessment of financial transactions in the areas of revenue receipts and payments and how the processes weighed on the scale of transparency and accountability in the oil and gas sector during the period under review.

“Other areas that NEITI focused on, in this report, were projects executed, deployment to capital projects and recurrent expenditure and how these aligned with the core responsibilities of the agencies, the government and citizens expectations”, he added.

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