The electricity Distribution Companies (DisCos) have dismissed the claim by an official of PriceWaterhouse Coopers (PwC) that they don’t pay taxes because they record losses since the power sector privatization in 2013.
A statement by the Executive Director, Research and Advocacy at the Association of Nigerian Electricity Distributors (ANED), Barr. Sunday Oduntan, on Thursday said the DisCos were reacting to the comment by the Chief Economist of PriceWaterhouse Coopers (PwC), Dr. Andrew Nevin last Wednesday.
Dr. Nevin, at a power sector roundtable organised by Mainstream Energy Solutions Limited in Kainji, Niger State on Tuesday said no DisCo in Nigeria has paid any tax to the Federal Government since 2013 when they were privatized, because they have been “on a loss-making track” since then.
The ANED which acknowledged Dr. Nevin’s effort to highlight the challenges of the sector however said his “claim was misleading, incorrect and not supported by the facts.”
DisCos said they are responsible corporate citizens and take their tax obligations to the federal and state governments, as applicable, seriously.
These taxes include the minimum Company Income Tax (CIT), Withholding Tax (WHT) and Value Added Tax (VAT).
“As a result, the DisCos diligently pay all necessary taxes that apply to their operations. We will like to encourage all parties interested in the growth and success of the Nigerian Electricity Supply Industry (NESI) to constantly, diligently verify their information, to avoid creating more challenges than that which already exists in the sector,” they held.
The 11 Discos were privatized in November 2013 and have been managed by private hands until 2015 when Yola DisCo was returned to government control. However, the 10 DisCos are privately operated and are represented by ANED, its association.
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