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How oil companies failed to remit N2.66tn to Nigerian Govt

oil company in nigeria
The Nigeria Extractive Inductries Transparancy Initiative has disclosed that 77 oil and gas firms are indebted to the tune of N2.66 trillion to the Nigerian Government.

The agency added that the indebtedness arose from failure to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals.

According to NEITI’s Executive Secretary, Orji Ogbonnaya-Orji, the 77 firms carried out their operations across the country.

FELLOW PRESS garthered that NEITI would publish fresh list of indebted oil firms that would give anti-corruption agencies including the Economic and Financial Crimes Commission to go after the defaulting organisations.

Ogbonnaya-Orji 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.

“A breakdown of the figures show 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, while $270.187m and $41.86m were unremitted gas flare penalties and concession rentals respectively.”

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