Buhari Unleashes EFCC, NFIU on Oil firms as N2.7trn Royalty Racket Worsens

Asides the unremitted N2.659 trillion revenue reported by NEITI, the NFIU has also uncovered over $5 billion and N700 billion not paid in the area of operations by oil companies

 

Nigerian President, Muhammadu Buhari, has unleashed the Nigerian anti-graft agencies, Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) on oil firms in Nigeria as the alleged unremitted tax, royalty racket by the companies degerates.

Platforms Africa reports that Buhari specifically directed the NFIU to lead the immediate recovery of N2.659trillion owed the federation by oil companies operating in the country.

Asides the unremitted N2.659trillion revenue reported by NEITI, the NFIU said it has uncovered over $5billion and N700billion not paid in the area of operations by oil companies.

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Tukur (left) and Orji during the MoU signing in Abuja. Credit: e-360

NFIU Director, Mr. Modibbo Hamman Tukur, disclsoed this on Friday during the signing of a Memorandum of Understanding (MoU) between the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Nigerian Financial Intelligence Unit (NFIU).

The said amount arises from the non-remittance of petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals by the defaulting oil and gas companies, according to NEITI.

Platforms Africa reports that a breakdown of figures earlier published by NEITi shows that a total of $143.99million is owed as petroleum profit taxes (PPT), $1.089billion as company income taxes (CIT) and $201.69Million as education tax. Others include $18.46million and £972,000 as Value Added Tax, $23.91million and £997,000 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.

Tukur, during the meeting at the NEITI secretariat in Abuja, commended the agency for a good job. He lauded Dr Orji for his commitment and passion.

He disclosed that the President has directed the setting up of a joint committee, to be headed by the Ministry of Finance, on recovery of all unremitted revenue as reported by NEITI, including those also reported by the NFIU.

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“This week Mr. President has approved officially all the recoveries to be done in this area. The Ministry of Finance has been directed to institute a recovery panel.

“We are heading to maximum transparency; there will be consolidation of data from NEITI, NFIU and other relevant agencies. And there will be very clear reconciliation with the players and regulators in the sector. No more hiding of national revenue,” the NFIU boss was quoted by e-360 to have stated.

He explained that the Economic and Financial Crimes Commission (EFCC) NEITI, NFIU, National Petroleum Investment Management Services (NAPIMS) and other relevant agencies will make up the joint revenue recovery panel.

According to Tukur, besides the reported unremitted N2.659trillion revenue by NEITI, the NFIU have additionally uncovered over $5billion and N700billion not paid in the area of operations by oil companies.

“Soon both our agencies will move to Ministry of Finance, sit with erring oil companies and resolve the issues and recover these outstanding revenues. If the oil companies are saying they are paying, we will verify what they have paid to government accounts… We all know what we are going through economically. Nobody wants to see the government borrowing,” he said.

Dr Orji (right) and Mr. Turkur in a chat before the commencement of the MoU signing ceremony

Tukur also disclosed that the committee will equally be looking into illegal activities and revenue loss in the mining sector. “We will also be looking into the mining sector where people do illegal mining, exploit our resources and move it out of the country illegally. Sometimes they use these proceeds to finance terrorism, we have seen some of such cases,” he said.

Reacting to the development, Dr Orji said NEITI is on the right track as the agency’s job is to provide information and data in the public domain that can be used to hold government and companies accountable.

“We are not comfortable that at a time when government is looking for money to fund national budget and meet citizens demand especially in the area of job creation, we find in our reports some money that can be deployed to address these demands, not recovered. We are happy to hear that the President has responded and we will be willing to work with all relevant agencies to ensure the recovery of these monies,” Dr Orji said.

The explained that the MOU being signed is sequel to a June meeting between the NFIU and NEITI, adding that the essence of the partnership is underpinned on joint information sharing, capacity building and support for NEITI’s investigative issues arising from criminal activities in the oil gas and mining sector, especially where it undermines national security.

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