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FG Earns N28.02trn From Crude, VAT, Others, NEITI Confirms
A Fiscal Allocation and Statutory Disbursement (FASD) report published by the Nigeria Extractive Industries Transparency Initiative (NEITI), covering 2017-2019 has revealed that four Federal Government agencies generated N28.02trillion within the period under review.
From the figure, minerals revenue contributed N12.84trillion (56.61percent) while non-minerals revenue contributed N6.57trillion (28.97percent).
Value-added tax (VAT) accounted for N3.27trillion (14.42percent), while ¦ 19.01trillion mineral revenue was disbursed to the tiers of government.
The report also highlighted that states’ over-dependent on Federation Account has peaked, as it currently accounts for 71percent of their earnings.
The report also noted that 81percent of states allocations is spent on recurrent expenditure.
The N28.02trillion was generated by the Nigerian National Petroleum Corporation (NNPC); Federal Inland Revenue Services (FIRS); Department of Petroleum Resources (DPR) now Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Mines and Steel Development (MMSD).
Out of the amount, N22.68trillion was remitted to the Federation Account.
The cost of collection and Joint-venture cash calls deductions by revenue generating agencies accounted for the differences between revenue generated and remittance.
The NEITI’s FASD audit examined total extractive industry revenue remitted into the Federation Account, tracked allocation and disbursement from the account to statutory recipients as well as utilization and application of the funds by the beneficiaries between the years 2017-2019.
It also covered nine selected states: Akwa-Ibom; Bayelsa; Delta; Gombe; Imo; Kano; Nasarawa; Ondo and Rivers states.
On the nine selected states covered by the exercise, the report revealed that their combined revenues inflows within the three years period were N5.104trillion.
Breakdown showed that statutory allocation accounted for N3.55trillion, while internally generated revenue (IGR) and loans accounted for N1.33trillion and N227billion, respectively.
Further breakdown shows that Delta State recorded the highest revenue of N1.083trillion while Nasarawa State recorded the lowest revenue of N214billion.
The beneficiary agencies include: Niger Delta Development Commission (NDDC); Tertiary Education Trust Fund (TETFund); Petroleum Trust Development Fund (PTDF); Petroleum Equalization Funds (PEF); Ecological Fund (EF) and Stabilization Fund (SFs).
Others are: Nigerian Sovereign Investment Authority (NSIA); Development of Natural Resources Fund (DNRF); Excess Crude Account (ECA); Nigeria Content Development and Monitoring Board (NCDMB) and Petroleum Products Pricing Regulatory Agency (PPPRA).
The NEITI FASD report revealed that FIRS generated ¦ 13.48trillion within the period under review with Petroleum Profit Tax (PPT) accounting for N5.80trillion (43.09percent), while Value-Added Tax (VAT) and other taxes accounted for 32percent and 24percent, respectively. The service recorded highest revenue collection of N5.02trillion in 2018.
The report disclosed that a total sum of ¦ 8.82trillion was generated by NNPC within the period. Breakdown shows that ¦ 4.55trillion came from domestic crude sales, while export receipts accounted for ¦ 4.27trillion.
It further disclosed that ¦ 5.33trillion was deducted at source for JV cash call and others, leaving the net amount of N3.49trillion as transferred to Federation Account.
“During the period under consideration, a total of ¦ 8.82trillion was generated. However, only ¦ 3.49trillion (39.5percent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls. The Deductions at source by NNPC negate the principle of Federation Account”, NEITI’s report stated.
From the report, DPR (now NUPRC) generated ¦ 3.53trillion for the three years under review, with royalty payments accounting for N3.40trillion (96.41percent).
The agency, however, transferred ¦ 3.53trillion to the Federation Account.
The audit established that the surplus of ¦ 6.72billion was as a result of unremitted receipts from prior year.
Ministry of Mines and Steel Development (MMSD) generated ¦ 12.498billion within the three years period.
Breakdown show that Mining Inspectorate Department (MID) contributed N6.43billion while Mining Cadastral Office (MCO) accounted for N6.06billion.
From the total revenue generated by the Ministry, a sum of ¦ 7.56billion was shared to the three tiers of government in 2019.
On the NDDC, NEITI report revealed that ¦ 755.96billion was generated by the commission within the period under consideration.
Breakdown shows that N551.08billion (73percent) was contributed by oil and gas companies, while the balance of ¦ 203.90billion (27percent) was the Federal Government’s contribution to the commission.
The report further revealed that the total expenditure by the commission during the period under review was N882.3billion.
Analysis of the expenditure shows that N778.29billion (88.20percent) was expended on development projects, while operational cost accounted for N104.07billion (11.80percent) of the total.
Analysis of project execution in member states ranks Delta State highest in terms of development projects undertaken by the commission to member states with total expenditure of ¦ 40.46billion (26percent) of the actual expenditure within the period, while Edo received the lowest development projects of about 5percent.
NEITI audit established that there was a gap between actual development projects expenditure as per audited financial statements and project monitoring list provided by the commission in the sum of ¦ 522.60billion.
“While N679billion was reported in NDDC’s financial statement, the project monitoring list reported expenditure of N157billion on physical projects among the nine member states”, NEITI audit report revealed.
The report, however, disclosed that 40 oil and gas companies defaulted in their payment obligation to the commission.
It also disclosed that the commission did not receive any monies from the Ecological Fund as stipulated by the law throughout the three years under review, this obviously negatively affected revenue inflow into the commission within the period.
On the Tertiary Education Trust Fund (TETFund), NEITI reported that the fund realised N644.19billion within the three years under review.
The NEITI report established that the actual funds available for disbursement by TETFund in the three years period was ¦ 624.32billion.
The report also disclosed that the sum of ¦ 102.14billion (46.55percent) was disbursed to the universities, while ¦ 46.12billion (21.35percent), ¦ 49.97billion (21.97percent) and ¦ 27.09billion (10.12percent) were disbursed to Polytechnics, Colleges of Education and other tertiary institutions programmes, respectively.
NEITI noted that the process of accessing the fund is cumbersome, and called on TETFund to simplify the process to enable more universities access the funds.
Petroleum Technology Development Fund (PTDF) revenue for the period under review was put at ¦ 155.34billion and 95percent came from signature bonus paid by oil and gas companies which is the main revenue source to the agency.
NEITI report reveals that out of ¦ 86.34billion utilised by the agency within the period under review, ¦ 59.84billion was spent on core operating expenses while ¦ 26.35billion and ¦ 143million was for personnel/administrative expenses and capital, respectively.
The report noted that the PTDF extended funding to 125 approved institutions, 43 locals and 82 foreign institutions.
According to the NEITI report there was low expenditure compared with the revenue released during the years under review as only 56percent of revenue was utilised.
The NEITI report put total receipts by Nigeria Content Development and Monitoring Board (NCDMB) for the three years under review at ¦ 126.73billion.
It noted that one percent Nigerian Content Development (NCD) payment accounted for N116.95billion (92percent) of the revenue.
The Federal Government stopped funding the agency from its budget in 2017.
According to the report, 48.07percent of the revenue was used for operating expenses while 51percent was used for capital expenditure.
The Nigerian Sovereign Investment Authority (NSIA), NEITI report disclosed that the total financial flows for the three year period were ¦ 1.33trillion.
Breakdown shows that the sum of ¦ 76.28billion was contributed by the government to the funds in 2017, while the sum of $250million was approved by National Economic Council (NEC) in 2019 but the money was remitted to the authority in August, 2020.
The report also revealed that NSIA’s investment fund witnessed phenomenal increase of 71percent within the three years under review to the sum of ¦ 946.36billion and noted that the return on capital employed for the Stabilization Fund (SF), Future Generations Fund (FGF) and Nigeria Infrastructural Fund (NIF) were 8.68percent, 7.21percent and 5.40percent, respectively.
NEITI report disclosed that Petroleum Product Pricing Regulatory Authority (PPPRA) received a total of N27.68billion as Federal Government subvention for the three years period.
It noted that the regime of subsidy payment on petroleum product was discontinued within the period under review.
The Ecological Fund (EF) recorded a total sum of ¦ 170.15billion during the period under review with statutory allocation accounting for the 93.43percent of the total revenues.
NEITI report reveals that North-Central received the highest projects in the sum of ¦ 36.08billion, while South-South received the lowest projects delivered amounting to N10.93billion.
The report also revealed that National Emergency Management Agency (NEMA) received ¦ 34.04billion from the fund.
From the report, total receipts accrued to the Stabilization Fund (SF) during the period under review were ¦ 85.10billion.
Breakdown shows that Statutory Allocation contributed 93.44percent, while other receipts accounted for 6.56percent.
NEITI reports disclosed that significant proportion of the fund during the period under review went into budget augmentation which was mainly disbursed to the states, noting that the 25percent transfers to NSIA fulfil the Fund’s statutory requirement to be set aside for investment purpose.
The report further noted that N17.4billion was transferred from the Fund in 2019 to African Union (AU) as Nigeria’s share of contribution to the body.
This transfer accounted for 19.74percent of the total disbursement from thefFund during the period under review.
The report also noted that expenses related to Federation Account Allocation Committee (FAAC) meetings and professional fees accounted for 8percent of the total fund outflows.
On Development of Natural Resources Fund (DNRF), the report revealed that the fund’s total receipts within the period under review were N284.92billion.
It noted 93.77percent of it came from statutory allocation.
The total disbursement from the fund was N312.01billion.
Disbursements to Federal Ministry of Water Resources and capital projects accounted for 44percent and 16percent, respectively.
Furthermore, the sum of N34.08billion was transferred to NEMA in 2019 which represented 11percent of total disbursement of the fund.
NEITI report revealed that not all receipts to the fund were utilised for the purpose for which the fund was established.
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I Won’t Allow Spoils Of Office To Change Me – Fubara …As Rivers People Mark Gov’s 50th Birthday With Prayers
Rivers State Governor, Sir Siminalayi Fubara, has declared that he will not be drunk with power or allow the associated advantages and benefits that come with holding a lofty position in government to change him.
Rather, the governor assured that he will remain committed to his vows made to Rivers people when he got their mandate, to completely put things in place that will transform the State to become what they dreamt it to become.
Governor Fubara made the remark when some leaders, elders and critical stakeholders of the State paid him a birthday visit to celebrate him as he attains 50 years at Government House in Port Harcourt on Tuesday morning.
The governor, according to a statement by his Chief Press Secretary, Nelson Chukwudi, explained that he had never subscribed to celebrating birthdays but seeing leaders of the State gather to celebrate him pulled out tears of joy from his eyes.
Governor Fubara said: “I want to say that I will still be the Fubara that you know; power will not change me. I will still make sure that what I hold dear in life remains, which is God and my respect for people. I will continue to maintain it.
“Power will come, power will go, but I will still remain the Fubara that you know. With your support, that Rivers State that we all yearn for, we will definitely, even if we don’t get it completely, we will put those things in place that will channel and drive us to that Rivers State with your support.”
Governor Fubara emphasised: “That is the only thing that I know I can assure you. I will not do anything, act in any manner that will bring disgrace to myself or to everyone of you that have decided and ready to sacrifice everything for us.
“This morning is a birthday morning. It is not a morning to discuss politics. It is a morning to say I am happy, I am 50 years, according to you. But the most important thing is: I am celebrating my Golden Jubilee. It means that I have joined the league of the old men from today.”
Fubara, on behalf of his wife, Lady Valerie and family, expressed gratitude to God for divine grace, and thanked all the leaders who made sacrifices to be in attendance so early to wish him well.
In his remark, former Governor of Rivers State, Sir Celestine Omehia, thanked God for installing Governor Fubara, who has become a deliverer of the State and its people from the hands of those bent on destroying Rivers State.
He said, it is, therefore, worthwhile to celebrate such a patient and meticulous leader, loved by all Nigerians on his 50th birthday because he has continued to prioritise the interest of the State and protect it.
The former Governor recounted the strength of faith in God that Governor Fubara has demonstrated, enjoyed divine direction in governance, and pledged the continued support of Rivers people to ensure the success of his administration.
In his speech, former National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, said regardless of who a kingmaker is, as soon as the king is crowned, such person must give way to the king to perform his duties but regretted that
the immediate past Governor, who styled himself as kingmaker had continued to do things to distract the king.
But Prince Secondus, noted that amidst the brewing crisis, Rivers people, and indeed, Nigerians have come to admire and love the character of steel, fear and total trust in God that Governor Fubara has demonstrated, including forging unity, and inclusivity, which are evidence of his mandate as divine.
Highlights of the event were prayers by the clergy for the Governor, his administration and the State; a toast; the cutting of the 50th Birthday cake by the Governor, who was supported by his wife; presentation of gifts to the Governor; rendition of special birthday songs; and a special birthday party organised by the elders and stakeholders to celebrate the Liberator of Rivers people at 50.
Later in the morning, members of the State Executive Council; Local Government Council chairmen; Permanent Secretaries; Government House staff; Service Commanders; and many others visited the Governor to wish him a glorious birthday, and presented gifts to celebrate his Golden Jubilee birthday.
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Tinubu Seeks Multifaceted Response To Terrorism, Other Security Threats
President Bola Tinubu, on Wednesday called for a multifaceted response to terrorism, insurgency and other forms of security threats in the Lake Chad Basin region.
Tinubu, represented by the Vice-President Kashim Shettima, made the call when he declare open the 5th meeting of the Lake Chad Basin Governors’ Forum in Maiduguri, the Borno capital.
The Tide source reports that the meeting, which was hosted by the Yobe State Government brings together eight Governors from Nigeria, Cameroon, Chad, and the Republic of the Niger.
The event also brings humanitarian organisations, and local and international communities to address pressing security challenges and explore solutions for stability in the region.
The president said the chain of events that disrupted the stability of the region over the past 15 years demands that power must be wielded responsibly to guarantee the safety and prosperity of the people.
The Nigerian leader noted that while military power was necessary to contain the security threats, it must be accompanied by strategies that address their root causes.
This, according to him, in include poverty, inequality, and lack of job opportunities for the region’s young population.
“Your Excellencies, distinguished ladies and gentlemen, our response to these threats must be multifaceted.
“While military solutions are indispensable, they must be complemented by strategies that address the root causes of insecurity – poverty, inequality, and the lack of opportunities for our youth.
“It is a tragic irony that Africa, a continent with the youngest population in the world, sees its youth become cannon fodder for destructive ideologies and the drivers of conflict.
“This is the challenge before us: to transform this demographic dividend into a force for good. Power’s true essence lies not in its possession but in its application.
“Hard power may secure borders, but it is soft power—through diplomacy, culture, and shared values—that builds bridges and binds us together,” he said.
Tinubu said every part of the world was entangled in its own unique security challenges, resulting in the global military gulping “a historic 2.4 trillion dollars in 2023, with no signs of slowing.”
He, however, observed that: “hard power, detached from the moral imperatives of justice and diplomacy, only widens the very divide it seeks to bridge.”
Tinubu told the Lake Chad Basin Governors’ Forum that it was only by sticking to the vision for which the forum was created that pursuing and adopting partnerships that benefit the people could be achieved.
Such partnerships, he said, include the collective commitment to the African Continental Free Trade Area (AfCFTA) and advancing the United Nations’ Sustainable Development Goals.
He noted that the choices made “today will echo through generations, shaping the future of this region.”
He recalled the successes recorded so far in repelling threats to the region’s borders and sovereignty by elements of terror.
The President attributed past victories by member countries to the joint missions they had embarked on.
Tinubu cautioned the governors and other stakeholders against allowing “the geopolitical tensions across the world to sow discord” in the region, and submitting themselves “to become tools in any proxy agenda.
“The salvation of the Lake Chad region is neither in Europe nor in the Americas. It lies in the hands of all those gathered here today.
“You, distinguished representatives of this forum, embody not only our collective will to protect the region but also the transformative potential that stability brings.
“The true enemy remains the non-state actors—those who exploit weak borders, poor governance, and fragile economies to challenge our claim to civilization.
” However, the worst threat we may face is not the insurgents or terrorists at odds with our humanity.
” It is the absence of cooperation, sincerity, and fidelity to our shared pact as brothers’ keepers.
“We undermine this pact when we renege on agreements to secure our borders when misinformation and falsehoods breed mistrust, and when we jeopardize the freedom and choices of our people.”
Earlier, Gov. Mai Mala Buni of Yobe, had said that the forum was an opportunity for states around the Lake Chad Basin region across Nigeria, Niger, Chad, and Cameroon Republics to discuss and reflect on the journey so far.
He noted that as partners in progress, the Yobe Government provided the platform for participants to strengthen contact and collaboration towards ensuring stabilisation, recovery, and resilience across the Lake Chad Basin in the months and years ahead.
Also, Gov. Babagana Zulum of Borno, commended the strategic partners of the forum, saying their contributions have enabled governments of the forum to tackle some of their challenges to strengthen and rebuild the region.
He said the platform was a rallying point for political cohesion, fostering regional interaction, sustaining the socio-economic development of the region, and regional integration.
On his part, Gov. Umaru Fintri of Adamawa, noted that the Basin had passed through the worst environmental moment, leading to the shrinking of the Lake Chad
“The United Nations Environmental Programme has recently revealed that Lake Chad has shrunk 90 per cent in six years and blamed the situation on climate change, irrigation and construction of dams and population increase.”
The Executive Secretary of Lake Chad Basin Commission, Amb. Mamman Nuhu, said the forum’s meeting “serves as a critical platform for fostering dialogue and enhanced collaboration.”
He also said that the meeting reaffirmed the collective commitment to addressing the multifaceted challenges facing the lake chad basin.
He noted that the theme of the meeting reflects the immense progress achieved so far and the equally immense work that needs to be done.
Ms Cynthia Rowe, Development Director for the British High Commission, Nigeria, and Representative of International Support Group, commended the governors of the region.
Rowe stressed that the region had recorded marked improvement in the face of daunting challenges.
She, however, pledged the support of the funding partners to continue in their efforts towards assisting the forum achieve its objectives.
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FG Suspends Max Air Operations For Three Months Over Kano Incident
The Federal Government, through the Nigeria Civil Aviation Authority, has suspended Max Air’s domestic flight operations following a tyre burst incident involving one of its aircraft in Kano on Tuesday night.
The affected Boeing 737-400 aircraft, with registration number 5N-MBD, suffered a tyre burst while landing at Mallam Aminu Kano International Airport at about 10:51 p.m. on 28 January 2025.
Although all 53 passengers on board were evacuated safely, the aircraft was temporarily grounded before the Federal Airports Authority of Nigeria reopened the runway around 8:00 a.m. on Wednesday.
The Nigerian Safety Investigation Bureau has since launched an investigation into the incident — the third involving Max Air in three months.
Confirming the suspension, NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, in a statement released yesterday, stated that the regulatory body would support NSIB’s probe while also conducting its own assessment of the airline.
“It must be stated that the specific cause(s) of this incident can only be established after the NSIB has conducted its investigation,” Achimugu said.
He noted that the NCAA had already been carrying out an organisational risk assessment for all scheduled airlines, including Max Air, before the latest incident.
However, as a result of this incident, Max Air is suspending its domestic flight operations for three months, effective from midnight on 31 January 2025, to allow for an internal review of its operations,” he stated.
During the suspension period, the NCAA will conduct a comprehensive safety and economic audit of the airline.
“The safety audit will involve a re-inspection of Max Air’s organisation, procedures, personnel, and aircraft, as specified by the Nigeria Civil Aviation Regulations,” Achimugu explained.
He added that the economic audit would assess the airline’s financial health to ensure it can sustain safe flight operations.
“The resumption of Max Air’s domestic flights will depend on the satisfactory completion of this audit,” he added.
While acknowledging the potential disruption to passengers, the NCAA reassured the public that safety remained its top priority.
“The NCAA is aware of the inconvenience this action may cause Max Air’s intending passengers. However, the safety and well-being of passengers is paramount. We appeal for patience and understanding while we ensure the protection of passenger rights,” the statement added.
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