POLITICAL Economy

Fuel Subsidy Costs Nigeria N1.16trn In 2021 – RMAFC

by admin on | 2026-08-07 17:38:19

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Fuel Subsidy Costs Nigeria N1.16trn In 2021 – RMAFC

By Maryam Muhammad, Abuja

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr Mohammed Bello Shehu, says Nigeria spent N1.16 trillion on fuel subsidy in 2021, with an additional N1.20 trillion deducted from federation crude oil sales proceeds within the same period.

Shehu disclosed this on Thursday while presenting the commission’s submission before the Senate Public Accounts Committee (SPAC), which is probing the 2021–2023 audit reports on the oil and gas sector by the Nigeria Extractive Industries Transparency Initiative (NEITI).

He said beyond the N1.16 trillion subsidy cost, other deductions included N16.20 billion for crude oil and petroleum product losses, N22.05 billion for pipeline repairs, and N6.75 billion for strategic stock holding.

The RMAFC chairman also faulted the method used in calculating the 13 per cent derivation allocation for oil-producing states, noting that it undermines the constitutional objective of the policy.

“The practice of computing the 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objective,” he said.

Meanwhile, the Senate committee postponed consideration of the submission by the Niger Delta Development Commission (NDDC), directing members to study the report ahead of the commission’s appearance next Wednesday.

The committee, chaired by Senator Ibrahim Dankwambo, also expressed displeasure over the absence of the Auditor-General of the Federation at the hearing.

Dankwambo described the failure to appear or send a representative as unacceptable, warning that the committee may invoke the powers of the National Assembly to compel attendance if the invitation is ignored again.

"The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk the invocation of the powers of the National Assembly, which will lead to his forced appearance," the senator warned.