By Chisaa Okoye
The House of Representatives has set up an adhoc committee to interface with the 77 oil and gas companies operating in Nigeria with a view to recovering about N2.6 trillion owed to the federal government.
The committee constituted on Wednesday and headed by the Deputy Chief Whip, Nkiruka Onyejeocha, was charged to reconcile what the federal government and oil companies owe each other as joint venture cash calls.
In a motion titled “Urgent Need to Recover Outstanding Debts owed the Federal Government by Oil and Gas Companies in Nigeria”, presented at the plenary by Hon. Ahmed Munir, a member representing Lere federal constituency of Kaduna, cited a report by the Nigeria Extractive Industries Transparency Initiative (NEITI) that 77 Oil and Gas Companies operating in Nigeria were owing the Federal Government over N2.6 trillion.
Munir expressed concern such a huge debt was being overlooked at a critical time when Nigeria needs funding for its annual budget. He noted that the debts, if recovered will help to boost Nigeria’s ailing economy.
His words: “The debts accrued from failure of the Firms to remit Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax, Royalties, Penalties and Concession on rentals to the federal government.
“If debts are recovered, the money could be used to service some of the Federal Government’s debts as well as fund up to 16.2 per cent of the 2022 budget deficit.”
Besides, the lawmakers sought for a proper inventory of the assets and liabilities of the Nigerian National Petroleum Corporation and its subsidies before their transfer to the newly incorporated NNPC Limited.
The House, therefore, directed the Nigeria Extractive Industries Transparency Initiative (NEITI), the National Oil Spill Detection and Response Agency (NOSDRA), and the Federal Inland Revenue Service (FIRS) to provide the data needed to facilitate the recovery of the debts from the oil firms.
These requests were made during debates on two separate motions on notice by Munir and Ibrahim Isiaka.
NEITI had in September, revealed that 77 oil and gas companies in Nigeria were indebted to the federal government to the tune of N2.659trillion.
The NEITI said the debt was a result of failure by the companies to remit petroleum profit tax, company income tax, education tax, value-added tax, withholding tax, royalty and concession on rentals to the government.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI explained the liabilities of the 77 companies covered by the agency’s 2019 audit of the oil and gas sector.
Based on findings in its 2019 audit reports of the oil and gas sector, NEITI found that oil and gas companies in Nigeria owe government about $6.48 billion which equals about two trillion, six hundred and fiftynine billion Naira (N2.659Trillion) at today’s exchange rate of N410.35, Orji said.