₦1.16tn Fuel Subsidy Bill Sparks Senate Probe

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, has revealed that Nigeria spent ₦1.

16 trillion on fuel subsidy in 2021, while an additional ₦1.20 trillion was deducted from the Federation’s crude oil sales proceeds.
Dr. Shehu disclosed this on Thursday while appearing before the Senate Public Accounts Committee (SPAC), which is investigating the 2021–2023 audit reports on the oil and gas sector conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI). He explained that, aside from fuel subsidy payments, crude oil and petroleum product losses accounted for ₦16.20 billion, pipeline repairs consumed ₦22.05 billion, while ₦6.75 billion was spent on strategic stock holding.
According to him, the objective of the 13 per cent derivation principle was also undermined during the period because of the method used in its computation. He stated that calculating the derivation on the balance of revenue after deductions, rather than on the total collections, was contrary to the intention of the derivation objective.
Meanwhile, the committee, chaired by Senator Ibrahim Dankwabo (Gombe North), stood down the presentation by the Niger Delta Development Commission (NDDC) to allow members study the report ahead of the commission’s reappearance next Wednesday.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation at the investigative session, noting that neither the Auditor-General nor a representative attended the hearing. Senator Dankwabo warned that the Auditor-General must appear before the committee next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.