Mineral resources contribute 64.7% of FG earnings, says NEITI

Of the total of N28.58 trillion remitted to the federation Account between 2012 and 2016, mineral sources contributed the highest sum of N18.15 trillion, representing about 64.7% of Nigeria’s total earning in the period under review.

This was disclosed by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest Fiscal Allocation and Statutory Disbursement Audit Report for the period mentioned.

A breakdown of the report has it that it was followed by followed by non-mineral source N6.68 trillion, representing about 23.4%, while VAT was put at N3.73 trillion, representing 13%.

Going by a year–by–year breakdown of the total remittances, N4.19 trillion was remitted in 2012, while N4.73 trillion was recorded in 2013. Furthermore, N4.69 trillion was recorded in 2014 while N2.89 trillion and N1.65 trillion were remitted in 2015 and 2016 respectively.

Out of the N18.16 trillion mineral revenues, the Federal Government received N8.32 trillion from 2012 – 2016, the 36 State Governments shared N4.22 trillion while the 774 Local Governments got N3.25 trillion. This is exclusive of N2.36 trillion 13% derivation to the oil, gas and mining producing states.

Analysis of the report further has it that out of the N6.68 trillion non-mineral revenues, the Federal Government received N3.52 trillion, while the 36 states got N1.79 trillion and 774 local governments took N1.38 trillion.

More so, the Federal Government received N560 billion from the N3.73 trillion total VAT revenue, 36 States got N1.88 trillion, while 774 local governments got N1.31 trillion.

It is pertinent to note that aside from the remittances to the Federation Account, the audit tracked statutory allocations and their applications with a specific focus on nine states, four interventionist agencies, and five special funds.

The nine states covered by the statutory allocation and disbursement segment of the report include Rivers, Bayelsa, Akwa Ibom, Nasarawa, Delta, Ondo, Imo, Kano and Gombe states.

The Federal agencies are Niger Delta Development Commission (NDDC), Petroleum Technology Development Fund (PTDF), Tertiary Education Trust Fund (TETFUND), and Petroleum Products Pricing Regulatory Agency (PPPRA). The special funds include Natural Resources Development Fund (NRDF), Petroleum Equalisation Fund (PEF), Excess Crude Account (ECA), Ecological Fund (EF), and Stabilization Fund (SF).