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  • Oil & Gas - News
  • Updated: September 09, 2022

NEITI Audit: FG Recovers N1.5 Trillion From Oil Companies

NEITI Audit: FG Recovers N1.5 Trillion From Oil Companies

An audit report by the Nigerian Extractive Industry Transparency Initiative (NEITI) has led to the recovery of N1.5 trillion in unpaid taxes and fees owed to oil corporations.

In a conversation with a few reporters in Abuja on Friday, the executive secretary of the monitoring group, Dr. Orji Ogbonnaya Orji, made this claim.

In order to recover the remaining N900 billion for the Federal Government, the NEITI may use its Memorandum of Understanding (MOU) with the Economic and Financial Crime Commission (EFCC) and Nigerian Financial Intelligence Unit (NFIU).

77 enterprises were reported to be oil Value Added Tax (VAT), Withholding Tax, Petroleum Profit Tax (PPT), and other taxes totalling N2.6 trillion, according to the 2019 NEITI oil and gas audit report, he continued.

He claims that previous to the NEITI announcement regarding the N2.6 trillion debt, FIRS received $810 million and NURPC received $1.416 billion, totalling $2.226 billion or N900 billion.

The NEITI chief claimed that between 2021 and this point in 2022, the organisation worked with the National Assembly review committee and pressured the creditors to pay more. From this, FIRS received $662.9 million and NUPRC received $913.5 million for a total of $1.576 billion or N600 billion.

According to the agency, there are still about $2.674 billion in unpaid taxes and fees from the oil industry, of which $18.98 million belongs to FIRS and $2.655 billion to NUPRC, translating to an estimated N1.07 trillion for Nigeria.

This information would be updated in the 2021 report, which is scheduled for release this year.

The EITI Standard, which is implemented in more than 20 countries, and the NEITI Act of 2007 support NEITI. It examines cash flows in Nigeria's oil and gas industry once a year through a Financial, Physical, and Process Audit.

The federal government owes 77 oil and gas businesses about N2.6 trillion in royalties, penalties, withholding taxes, petroleum profit tax, company income tax, education tax, value-added tax, and concessions on rents, according to the 2019 NEITI report.

Orji added that NEITI was working to publish the 2021 report before the year is out and that the organisation was getting ready for the EITI revalidation process, which will take place in January 2023 and will assess Nigeria's progress in improving openness in the oil and gas sector.

Orji pointed out that the Petroleum Industry Act (PIA) 2021, the new petroleum industry regulators, and the current changes at NNPC Ltd. were all made possible thanks to NEITI.

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