Nigeria's Fuel Subsidy Cost N1.16 Trillion in 2021

Dr. Mohammed Bello Shehu, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), revealed that Nigeria incurred a cost of N1.16 trillion on fuel subsidy in 2021. Additionally, N1.20 trillion was deducted from federation crude sales proceeds during the same period.

This disclosure was made on Thursday while presenting to the Senate Public Accounts Committee (SPAC), which is investigating the 2021–2023 audit reports on the oil and gas sector by the Nigeria Extractive Industries Transparency Initiative (NEITI). Shehu also mentioned other deductions, including N16.20 billion for crude and product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holding.

He expressed concerns regarding the current method of computing derivation revenue, stating it undermines the 13% derivation principle. The committee, chaired by Senator Ibrahim Dankwambo of Gombe North, postponed the submission of the Niger Delta Development Commission (NDDC) to allow for further review.

Senator Dankwambo criticized the absence of the Auditor-General of the Federation and mandated their appearance at the next session.