FG Asks EFCC, NFIU To Recover N2.6trn Tax Debt From 77 Oil Firms

The Federal Government has vowed to recover a total tax debt of N2.66trn currently being owed by 77 Oil Firms to the federation.

The Nigerian Extractive Industry Transparency Initiative’s Executive Secretary, Orji Ogbonnaya-Orji, said this in Abuja while speaking on the status of EITI implementation in Nigeria.

He said already, the 77 oil firms have been reported to the Economic and Financial Crimes Commission and the Nigeria Financial Intelligence Unit for necessary action.

He said the 77 oil Firms have failed to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals.

A breakdown of the figures showed that a total of $143.99m is owed as petroleum profit taxes, $1.089bn as company income taxes and $201.69m as education tax.

Others include $18.46m and £972,000 as Value Added Tax, $23.91m and £997,000 as withholding tax, $4.357bn as royalty oil, $292.44m as royalty gas.

Similarly, he said about $270.187m and $41.86m were unremitted gas flare penalties and concession rentals respectively.

He explained that the total liabilities of the 77 companies were captured in the agencies’ 2019 independent audit report of the oil and gas sector.

Ogbonnaya-Orji said, “The NEITI reports based on findings in its 2019 audit of the oil and gas sector show that oil and gas companies in Nigeria owe government about $6.48bn, which equals N2.66tn at today’s exchange rate of N410.35.”

The N2.66tn debt according to comparative analysis could have covered the entire capital budget of the Federal Government in 2020 or even be used to service the Federal Government’s debt of $2.68bn in 2020.

The NEITI Boss added, “In 2021, if the money is recovered the N2.66tn could fund about 46 per cent of Nigeria’s 2021 budget deficit of N5.6tn and is even higher than the entire projected oil revenue for 2021.”

This, he said, was why NEITI had decided to work with the government to provide relevant information and data to support efforts at recovering this money.

“We therefore appeal to these companies to ensure that they remit the various outstanding sums against them before the conclusion of the 2020 NEITI audit cycle to the relevant government agencies responsible for collection and remittances of such revenue,” he stated.