77 oil companies owe FG N2.6tn, says NEITI

A total of 77 oil companies owe the Federal Government N2.659 trillion over unpaid taxes, Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Ogbonnaya Orji.

He said this at a press conference in Abuja on Tuesday, saying the NEITI’s findings were contained in its 2019 audit reports of the oil and gas sector.

He said the sum owed the government could fund 46 per cent of Nigeria’s 2021 budget deficit of N5.6 trillion.

Orji said, “The NEITI reports based on findings in its 2019 audit reports of the oil and gas sector show that oil and gas companies in Nigeria owe the government about $6.48billion which equals about N2.659 trillion at today’s exchange rate of N410.35.

“Data available to NEITI indicates that 77 companies (including international and Nigerian-owned oil and gas companies) owe these debts which arise from failure to remit petroleum profit tax, company income tax, education tax, value-added tax, withholding tax, royalty and concession on rentals.

He also said, “This debt is at a time when the government is borrowing money to fund the provision and upgrade of infrastructure for Nigerians, uplift their standards of living, provide steady power supply and access to good roads, quality healthcare and security.

“A breakdown of the figures shows that a total of $143.99 million is owed as petroleum profit taxes, $1.089 billion as company income taxes and $201.69 million as education tax. Others include $18.46 million and £972,000 as value-added tax, $23.91 million and £997,000 as withholding tax, $4.357 billion as royalty oil, $292.44 million as royalty gas, while $270.187 million and $41.86 million were unremitted gas flare penalties and concession rentals respectively.”

According to the NEITI boss, the huge sum could have covered the entire capital budget of the FG in 2020 or even used to service the government’s debt of $2.68 billion in 2020.

“In 2021, the N2.659 trillion could fund about 46 per cent of Nigeria’s 2021 budget deficit of N5.6 trillion, and is even higher than the entire projected oil revenue for 2021,” he said.

Orji maintained the he remained “committed to strengthening the powers and functions of the NEITI through an amendment of the NEITI Law enacted in 2007.”