RMAFC Says Oil-State Derivation Is Undermined by ₦1.2tn Crude-Revenue Deductions

The Revenue Mobilisation Allocation and Fiscal Commission told the Senate Public Accounts Committee that Nigeria spent ₦1.16 trillion on fuel subsidy in 2021. A further ₦1.20 trillion was deducted from proceeds from federation crude oil sales during the period under review. The commission listed other deductions, including ₦16.20 billion for crude oil and petroleum product losses, ₦22.05 billion for pipeline repairs, and ₦6.75 billion for strategic stock holding. RMAFC Chairman Mohammed Shehu said calculating the 13 per cent derivation for oil-producing states after these deductions undermines the constitutional purpose of derivation. The committee also delayed consideration of the NDDC report and warned the Auditor-General to attend its next sitting or face legislative action.

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