The Nigeria Extractive Industries Transparency Initiative (NEITI), on Tuesday, said.about 77 oil and gas FIRMS in Nigeria owe the Federal Government N2.659 trillion.
NEITI said the debt arises from failure to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals.
NEITI Executive Secretary Dr Orji Ogbonnaya Orji disclosed this while briefing the journalists on the status of EITI implementation in Nigeria.
He said total liabilities of the 77 companies covered by the NEITI process was at the agencies’ 2019 independent audit report of the oil and gas sector.
The NEITI chief said the disclosure is important and timely in view of the 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 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 government about $6.48Billion which equals about Two trillion, six hundred and fifty nine billion Naira (N2.659 trn) at today’s official
exchange rate of N410.35.
Orji said “a breakdown of the figures show that a total of $143.99million is owed as petroleum profit taxes, $1.089billion as company income taxes and $201.69Million as education tax. Others include $18.46Million and £972Thousand as Value Added Tax, $23.91million and £997Thousand as Withholding Tax, $4.357billion as royalty oil, $292.44Million as royalty gas, while $270.187Million and $41.86Million were unremitted gas flare penalties and concession rentals respectively.”