The Nigeria Extractive Industries Transparency Initiative (NEITI) has hinted of its moves to report oil and gas companies that have defaulted in remittance of their profit taxes to the federation account to anti-graft agencies.
The organisation’s Executive Secretary, Dr .Orji Ogbonnaya Orji , reported that based on the 2019 Oil and Gas Industry and Solid Mineral Industry audits conducted by NEITI, 77 oil and gas companies were currently owing the country $6.48 billion (about N2.659 trillion).
Specifically, he stated that debts derived from failure of the companies to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals to the Federation Account.
He reported that the audit findings showed that a total of 143.99 million dollars was owed as petroleum profit taxes; 1.089 billion dollars as company income taxes and 201.69 million dollars as education tax.
Other taxes, he listed as due to the Nigerian government from the operating oil, gas and solid minerals entities include the 18.46 million dollars and 972,000 pounds owed as Value Added Tax; 23.91 million dollars and 997,000 pounds owed as Withholding Tax; 4.357 billion dollars owed as royalty on oil and 292.44 million dollars owed as royalty on gas.
Also, NEITI stated that 270.187 million and 41.86 million dollars were unremitted gas flare penalties and concession rentals respectively.
Noting that the disclosure by NEITI is important and timely in view of government’s current search for revenues to address citizens’ demand for steady power, access to good roads, quality education, fight insurgency and creation of job opportunities for the country’s teeming youths, the Executive Secretary maintained that the organization was determined to help government recover the money from the 77 companies.
He advised the affected companies to ensure 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 to avoid sanctions or penalties.
He expatiated: “A comparative analysis of what this huge sum of N2.65 trillion can contribute to economic development shows that it could have covered the entire capital budget of the Federal Government in 2020 or even used to service the Federal Government’s debt of 2.68 billion dollars in 2020.
“In 2021, if the money is recovered 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.
“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 disclosure of this information is 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.
“It is important that the process of recovering this humongous sum be set on course to support government in this period of dwindling revenues”, Orji added.
On NEITI’s achievements, he said that within the short period of re-constitution and inauguration of the organisation’s Board, the organization had commenced the process of reviewing of NEITI Act to strengthen its powers and functions; ensured timely publication and presentation of the reports; secured permanent office accommodation for the agency after 17 years of squatting on rent; and sustained and diversified partnerships with key stakeholders and partners.
Orji listed other achievements of the organization as including the appointment of NEITI into the implementation Committee of the Petroleum Industry Act, PIA; the beginning of the development of a five-year NEITI Strategic Plan (2022-2026) and NEITI Audit Automation Project.
In addition, he also spoke about Nigeria’s involvement in Opening Extractives programme; NEITI’s appointment to lead the global EITI Contract Transparency Network; the designing of a new, functional and Interactive website; and reconstitution of the civil society and communication sub-committee; among other achievements of the organization.
