Reps probe N2.6trn tax evasion by 77 oil companies

The House of Representatives on Wednesday resolved to set up a 12-member adhoc committee to investigate and recommend ways to recover the N2.6 trillion owed the Federal Government by oil companies operating in Nigeria.

This followed the adoption of a motion by Ahmed Munir (APC, Kaduna) who quoted a report by the Nigeria Extractive Industries Transparency Initiative that 77 oil and gas companies were owing the government over N2.6 trillion.

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He said the debts accrued from the failure of the firms to remit Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax, Royalties, Penalties and Concession on rentals to the government.

He said: “Such a huge debt is being overlooked at a critical time when the country needs funding for its annual budget

“If debts are recovered, the money could be used to service some of the Federal Government’s debts as well as fund up to 16.2 per cent of the 2022 budget deficit.

“Recovery of the debts is critical in this period of dwindling revenues especially as the Covid-19 pandemic has grossly affected the country’s economy”.