N2.6tr debt: Reps demand evidence of taxes, royalties, other payments from oil coys

The House of Representatives ad-hoc Committee on the recovery of N2.6 trillion being owed to the federal government by oil and gas companies has directed the companies to present evidence of payments of taxes, royalties and other payments they made since 2019. Chairman of the committee, Nkiruka Onyejeocha gave the directive at the resumed investigative […]

The House of Representatives ad-hoc Committee on the recovery of N2.6 trillion being owed to the federal government by oil and gas companies has directed the companies to present evidence of payments of taxes, royalties and other payments they made since 2019.

Chairman of the committee, Nkiruka Onyejeocha gave the directive at the resumed investigative hearing on Wednesday.

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She also directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to provide payment records on field basis from 2019 till date as well as all outstanding as at March 12.

The NUPRC was to also provide detailed information of crude oil production, lifting, gas production and utilisation, gas flare including payment from 2019 till date.

Onyejeocha also directed NNPC to provide details of a $440 million waiver to Nigeria Petroleum Development Companies (NPDC) as well as outstanding debt owed to NUPRC, FIRS and other government revenue agencies.

She said the records would be needed to clarify deductions made on remittances to the federation account from domestic crude sales.

Onyejeocha said the records to be provided should include detailed NEEDS Assessment, cost breakdown and procurement process on the selection of vendors for pipeline repairs and maintenance.

She added that a detailed breakdown of crude and product losses, pipeline break points and volume including third-party government agency validation certification should also be provided.

Onyejeocha also directed FIRS to provide details of payment and outstanding tax obligation as at March 16, with details of tax waivers given to oil and gas companies from 2019.

She also directed the Central Bank of Nigeria (CBN) to provide FIRS, NNPC, NUPRC bank statements for confirmation of receipts of outstanding liabilities from 2019 till date.

It could be recalled that a NEITI report had revealed that 77 oil and gas companies owe the federal government N2.6 trillion in outstanding taxes, royalties and other funds.