Nigeria spent N1.16 trillion on fuel subsidy in 2021, according to the Revenue Mobilisation Allocation and Fiscal Commission.
RMAFC Chairman Mohammed Bello Shehu disclosed the figure before the Senate Public Accounts Committee during an investigation into findings from Nigeria Extractive Industries Transparency Initiative audit reports covering 2021 to 2023.
Shehu said another N1.20 trillion was deducted from federation crude-oil sales proceeds during the period.
Other deductions included N16.20 billion attributed to crude and product losses, N22.05 billion for pipeline repairs and N6.75 billion for strategic stock holding.
The RMAFC chairman also criticised the method used to calculate the 13 per cent derivation allocation to oil-producing states.
He argued that computing derivation after deductions from total revenue reduced the amount available to producing states and conflicted with the intention of the constitutional provision.
The Senate committee is examining revenue remittances, deductions from crude earnings, subsidy payments and financial compliance across the petroleum sector.
Consideration of a submission from the Niger Delta Development Commission was postponed to allow lawmakers study its documents.
The panel also expressed displeasure over the absence of the Auditor General of the Federation.
Committee Chairman Ibrahim Dankwambo warned that the Auditor General could be compelled to appear if the office failed to honour the next invitation.
Further hearings are expected as lawmakers seek explanations for revenue deductions and possible financial irregularities in the oil and gas sector.
