NEITI Report Shows NNPCL Failed to Remit N2.8 Trillion in Taxes to FG
- A report by NEITI revealed that the NNPCL is yet to pay up the federal government N2.8 trillion for tax last year
- This amounts to over 80% of the uncollected tax revenues out of the total amount owed for the period
- The report also shows the oil company failed to send FG more than N4 trillion
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The Nigerian Extractive Industries Transparency Initiative (NEITI) reports that in 2022, the Nigerian National Petroleum Company Limited (NNPCL) failed to pay the Federal Government roughly N2.8 trillion in taxes.
According to NEITI's recently published "2021 Oil and Gas Industry Report," NNPCL owes the Nigerian Upstream Petroleum Regulatory Commission more than 80% (N2.8tn) of the uncollected tax revenues.
This is out of the approximately N3.5tn ($8.25bn at the N448/$1 exchange rate in 2022) owed during the period under review.
Source: UGC
This follows a report that the Nigerian government is the biggest debtor to the NNPCL with over N7 trillion in subsidy debts.
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FG commits to supporting the extractive industry
At the report's unveiling, Senator George Akume, Secretary to the Government of the Federation, reiterated the Federal Government's commitment to implement NEITI's recommendations.
According to the report, Esuabana Nko, Permanent Secretary of Political and Economic Affairs, represented him at the event.
The audit also detailed how, in 2021, the oil company failed to send federal government more than N4 trillion.
The report states that the unremitted amount included $871 million in domestic crude oil sales, $279 million in trial marketing revenue earned by the Federation under the First Exploration and Production Joint Venture, $8 million from Oil Mining Licence 116 operated by a subsidiary of NNPCL, the Nigerian Petroleum Development Company.
In addition, it stated that about $46 million in unremitted balance from the domestic petrol proceeds account as of December 31, 2021, is included.
While exported crude oil sales brought in an overall total of roughly $5.4 billion, domestic crude sales brought in $5.8 billion, and equity petrol sales brought in $648 million in 2021.
According to the report, the entire amount of crude oil lifted and sold as feedstock for the Federal Inland Revenue Service accounts and the former Department of Petroleum Resources in 2021 came to almost $4 billion.
Legit.ng earlier reported that The Nigerian government reportedly owes the Nigerian National Petroleum Company Limited (NNPCL) about N7.3 trillion
NNPCL shuns Dangote Refinery, swaps crude oil for loan with others
Legit.ng earlier reported that the NNPCL could not remit $6.923 billion to the federation account and traded about $7.108 billion worth of crude oil under its Direct Sale Purchase (DSDO) scheme in 2021.
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The oil firm also owes $13.591 million in outstanding taxes to the Federal Inland Revenue Service (FIRS).
In comparison, unpaid federation revenue to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) amounts to $8.251 billion as of December 31, 2022.
The Nigerian Extractive Industry Transparency Initiative (NEITI) disclosed this in its 2021 Oil and Gas Report.
Source: Legit.ng
