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Oil Firms Owe Nigeria $6.48 billion

Is Data The New Oil? - Tekedia

It seems Nigeria has some potential new avenues to take care of its debts: money oil companies are owing it. According to Nigeria Extractive Industries Transparency Initiative (NEITI), that figure is about $6.48 billion.

Seventy-seven international and Nigerian oil and gas companies currently owe the Nigerian government $6.48 billion (over N2.6 trillion), the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya, said Tuesday. He said the debts were a result of the companies’ failure to remit petroleum profit tax, company income tax, education tax, value-added tax, withholding tax, royalty, and concession on rentals. He did not provide the names of the companies.

“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,” he said.

“A comparative analysis of what this huge sum can contribute to economic development shows that it could have covered the entire capital budget of the federal government in 2020 or even used to service the federal government’s debt of $2.68billion in 2020. In 2021, the 2.659 trillion could fund about 46 per cent of Nigeria’s 2021 budget deficit of N5.6 trillion and is even higher than the entire projected oil revenue for 2021.

“This is why it is important that the process of recovering this humongous sum be set on course to support the government in this period of dwindling revenue.”