The Senate’s ongoing probe of Nigeria’s oil and gas sector on Thursday uncovered fresh revelations that the country spent a staggering N1.16 trillion on fuel subsidy in 2021, even as lawmakers threatened to compel the Auditor-General of the Federation to appear before them over his absence from the high-profile investigation.

The startling disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, during an investigative session of the Senate Public Accounts Committee (SPAC), which is examining the Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports covering the 2021–2023 fiscal years.

According to Shehu, apart from the N1.16 trillion expended on fuel subsidy, another N1.20 trillion was deducted from proceeds of federation crude oil sales. He further disclosed that N16.20 billion went to crude oil and petroleum product losses, N22.05 billion was spent on pipeline repairs, while N6.75 billion was deducted for strategic stock holding.

The RMAFC boss also faulted the method adopted in computing the constitutional 13 per cent derivation for oil-producing states, arguing that the current practice shortchanges beneficiary states.

He maintained that calculating the derivation after deducting subsidy and other charges from total oil revenue defeats the constitutional intention behind the derivation principle.

“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 told the committee.

In another dramatic twist, the committee postponed consideration of the submission by the Niger Delta Development Commission (NDDC), directing the agency to return next Wednesday after lawmakers study its presentation.

The session, however, turned tense when the Auditor-General of the Federation failed to appear before the committee or send any representative.

Visibly displeased, Chairman of the committee, Senator Ibrahim Dankwabo (Gombe North), described the absence as unacceptable and warned that the National Assembly would invoke its constitutional powers to compel the Auditor-General’s attendance if he fails to honour the next invitation.

“The Auditor-General must unfailingly appear before this committee on Tuesday next week. Failure to do so will leave us with no option but to invoke the powers of the National Assembly to compel his appearance,” Dankwabo declared.

The Senate panel’s investigation is expected to intensify in the coming days as lawmakers continue scrutinising billions of naira in oil sector deductions, subsidy payments and revenue remittances contained in the NEITI audit reports.