The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI) Orji Ogbonnaya-Orji, while speaking on the status of EITI in Abuja on Tuesday said the indebtedness of 77 oil and gas companies to the Federal Government is now N2.66tn.
Orji said the 77 firms carried out their operations across the country.
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, TOS NEWS has learnt.
He said the N2.66tn debt arose from failure to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals.
He explained that the total liabilities of the 77 companies were captured in the agencies’ 2019 independent audit report of the oil and gas sector.
According to him, “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.”
The NEITI boss said the disclosure was important in view of the government’s current search for revenue to address the demand for steady power, good roads, quality education, fight against insurgency and job creation.
“A comparative analysis of what this huge sum of N2.66tn can contribute to economic development shows that it could have covered the entire capital budget of the Federal Government in 2020 or even be used to service the Federal Government’s debt of $2.68bn in 2020,” he stated.
He added, “In 2021, if the money is recovered, the N2.66tn could fund about 46 per cent of Nigeria’s 2021 budget deficit of N5.6tn and is even higher than the entire projected oil revenue for 2021.”
This, he said, was why NEITI had decided to work with the government to provide relevant information and data to support efforts at recovering this money.
“We therefore appeal to these 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,” he stated.
The transparency agency boss cautioned oil firms that NEITI would no longer watch while these debts continue to remain in its reports unaddressed.