The Senate’s investigation into Nigeria’s oil and gas finances intensified on Thursday following revelations that the country spent N1.16 trillion on fuel subsidy in 2021, while lawmakers threatened to invoke the constitutional powers of the National Assembly to compel the Auditor-General of the Federation to appear before an ongoing probe.

The disclosures emerged during a session of the Senate Public Accounts Committee examining the 2021–2023 audit reports of the oil and gas sector prepared by the Nigeria Extractive Industries Transparency Initiative (NEITI).

Appearing before the committee, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, disclosed that, in addition to the N1.16 trillion spent on fuel subsidy, another N1.20 trillion was deducted directly from proceeds of crude oil sales during the period under review.

According to Shehu, crude oil and petroleum product losses amounted to N16.20 billion, while N22.05 billion was spent on pipeline repairs and N6.75 billion on strategic stock holdings, further reducing revenues available to the federation.

He also questioned the current method of calculating the constitutionally guaranteed 13 per cent derivation fund, arguing that computing the allocation after multiple deductions from total oil revenue undermines the intention of the Constitution.

Shehu said the derivation principle should be based on gross revenue rather than the balance remaining after various deductions.

The presentation added fresh momentum to the Senate’s broad investigation into oil sector finances, revenue remittances and expenditure management.

The committee also suspended consideration of the submission by the Niger Delta Development Commission (NDDC), directing the agency to return next Wednesday after lawmakers complete a detailed review of its report.

Proceedings took another dramatic turn when the Auditor-General of the Federation failed to appear before the committee and neither sent a representative nor offered any explanation for his absence.

Chairman of the Senate Public Accounts Committee, Senator Ibrahim Dankwabo, described the absence as unacceptable and directed the Auditor-General to appear at the committee’s next sitting on Tuesday.

Dankwabo warned that failure to honour the invitation would leave the committee with no choice but to invoke the constitutional powers of the National Assembly to compel his appearance.

“The Auditor-General must unfailingly appear before this committee on Tuesday next week or risk invocation of the powers of the National Assembly, which will lead to his forced appearance,” the senator said.

The Senate’s ongoing investigation is expected to scrutinise oil sector transactions, subsidy payments, revenue deductions and remittances as lawmakers seek greater accountability in the management of Nigeria’s petroleum resources.