Nigeria's RMAFC Reports ₦1.16trn Fuel Subsidy in 2021

During a presentation before the Senate Public Accounts Committee (SPAC) on Thursday in Abuja, Dr. Mohammed Bello Shehu, Chairman of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), revealed that Nigeria spent ₦1.16 trillion on fuel subsidies in 2021. The committee, chaired by Senator Ibrahim Dankwabo (PDP, Gombe North), is investigating the 2021–2023 oil and gas industry audit reports released by the Nigeria Extractive Industries Transparency Initiative (NEITI).

Shehu provided a breakdown of deductions from crude sales, noting that crude and product losses accounted for ₦16.20 billion, pipeline repairs and maintenance cost ₦22.05 billion, and strategic stock holding was ₦6.75 billion. He expressed concerns regarding the computation of the 13% derivation fund for oil-producing states, stating that the current formula undermines its original intent.

Additionally, the Senate panel postponed the Niger Delta Development Commission's (NDDC) submission and expressed displeasure over the absence of the Auditor-General of the Federation, threatening to compel attendance if necessary.