Dr. Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), stated that Nigeria allocated N1.16 trillion toward fuel subsidies during 2021. He shared these figures on Thursday while addressing the Senate Public Accounts Committee in Abuja, which is currently reviewing the 2021-2023 oil and gas audit reports compiled by the Nigeria Extractive Industries Transparency Initiative.
Beyond the subsidy costs, Shehu noted that N1.20 trillion was subtracted from total crude sales income. Additional expenses included N16.20 billion attributed to product and crude losses, N22.05 billion for pipeline maintenance, and N6.75 billion for strategic stock management. Furthermore, the chairman argued that current methods of calculating the 13 percent derivation fund contradict its original legislative purpose because the calculation occurs after various deductions are taken from total revenue.
During the same session, the committee, led by Senator Ibrahim Dankwambo, delayed the presentation from the Niger Delta Development Commission to allow for further review, setting a new date for August 12. Senator Dankwambo also criticized the Auditor-General of the Federation for missing the meeting without providing a representative or a valid excuse. He warned that the Auditor-General must attend the next session on Tuesday or face compulsory measures authorized by the National Assembly.
