By Teddy Nwanunobi
The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that 77 international and local oil and gas companies are owing the Federal Government $6.48 billion (over N2.6 trillion).
The information was disclosed by the Executive Secretary of the NEITI, Orji Ogbonnaya Orji.
“The figure is based on findings in the NEITI 2019 audit reports of the oil and gas sector“
According to Orji, the debts were as a result of the companies’ failure to remit petroleum profit tax (PPT), company income tax (CIT), education tax (ET), value added tax (VAT), withholding tax (WT), royalty, and concession on rentals.
Orji, said the figure is based on findings in the NEITI 2019 audit reports of the oil and gas sector, adding that the owed money could be useful at a time the government is borrowing money to fund the 2021 budget.
The Executive Secretary said that oil and gas companies owe $143.99 million as PPTs, $1.089 billion as CITs, and $201.69 million as ET.
“Others include: $18.46 million and £972 thousand as value added tax, $23.91 million and £997 thousand 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.
“A comparative analysis of what this huge sum 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 in 2020. In 2021, the 2.659 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 it is important that the process of recovering this humongous sum be set on course to support the government in this period of dwindling revenue,” Orji said.
While assuring that NEITI was determined to help the government recover this money, he 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 of such revenue
“The NEITI will no longer watch while these debts continue to remain in its reports unaddressed. We will provide all necessary information and data to sister agencies including anti-corruption agencies whose responsibilities are to recover these debts into government coffers.
“NEITI made a commitment that it will ensure that its reports are linked to visible impacts that are measurable. This is one key area where we want to ensure compliance to extant rules on remittances due to the government,” he added.