Nigerian government has asked seventy seven oil and gas companies to pay over Two point Six trillion naira debt.
The debt were acquired as a result of the companies’ failure to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals.
The Nigeria Extractive Industries Transparency Initiative (NEITI) executive Secretary, Dr. Orji Ogbonnaya Orji said in Abuja while briefing the media on the status of NEITI implementation in Nigeria at mid-year briefing and presentation of scorecard for seven months.
Dr. Orji said that the total liabilities of the 77 companies covered by the NEITI process was at the 2019 independent audit report of the oil and gas sector.
Dr. Orji explained that “The NEITI reports based on findings in its 2019 audit reports of the oil and gas sector showed that oil and gas companies in Nigeria owed government over $6.48Billion which equals to about Two trillion, six hundred and fifty nine billion Naira (N2.659Trillion).”
The NEITI executive Secretary disclosed that “A breakdown of the figures show that $143.99million is owed as petroleum profit taxes, $1.089billion as company income taxes and $201.69Million as education tax.”
Others include ‘’$18.46Million and £972Thousand as Value Added Tax, $23.91million and £997Thousand as Withholding Tax, $4.357billion as royalty on oil, $292.44Million as royalty on gas, while $270.187Million and $41.86Million were unremitted gas flared penalties and concession rentals.”
Dr. Orji said the disclosure was necessary in view of the government’s continues search for more revenues to address citizens’ demand for increased power generation and supply, access to motorable roads, quality education, fight insurgency and creation of job opportunities for the country’s teeming youths.
A comparative analysis of what this N2.65trillion can contribute to economic development shows that when recovered it could cover the entire capital budget of the federal government for a year or used to service the federal government’s debt of $2.68billion as at last year.
Dr. Orji stated that “In 2021, if the money is recovered the 2.659trillion could fund about 46% of Nigeria’s 2021 budget deficit of N5.6Trillion and is even higher than the entire projected oil revenue for 2021. This is why NEITI is set to work with the government to provide relevant information and data to support efforts at recovering this money.’’
The NIETI scribe said: ‘’The disclosure of this information was in line with NEITI’s mandate to conduct audits, disseminate the findings to the public to enable the citizens especially the media and civil society to use the information and data to hold government, companies and even society to account.’’
He called on the Nigerian government to set the process of recovering the money on course in this period of dwindling revenues.
NEITI also expressed its determination to help government recover the money for the needed infrastructure in line with its mandate and their focus on “Relevance Built on Revenue Growth and Impact.”
Dr. Orji appealed to the 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.
He cautioned that “NEITI will no longer watch while these debts continue to remain in its reports unaddressed. We will provide all necessary data to relevant agencies and partners whose responsibilities are to recover these debts into government coffers or promote such initiatives.”
The Chairman of the NEIT Board, Mr. Olusegun Adekunle welcomed the achievements so far recorded and assured that a lot more needs to be done in the EITI implementation in Nigeria, especially under a new Petroleum Industry Act regime and a solid minerals sector that is begging for coordination, noting that the civil society and the media, being the third leg of the EITI tripod has critical roles to play in this Initiative.
“To effectively undertake this task of ensuring prudent management of extractive resources, there is the need for effective oversight of the implementation of the EITI standard by all relevant frontline agencies of government and companies.’’
The NEITI Chairman assured members of the civil society and the media that the NEITI Board under his watch will do all within its power to sustain the existing partnership and ensure a more robust and cordial relationship with civil society groups as every input from the civil society and the media will receive speedy and due attention.
