The House of Representatives has resolved to investigate alleged government debts by oil and gas companies in Nigeria to the tune of N2.6 trillion.
The House constituted a 12-member committee led by the House Majority leader, Alhassan Ado Doguwa, to carry out a comprehensive investigation into the matter and report back to it.
The House also urged the Nigeria Extractive Industries Transparency Initiative (NEITI), the National Oil Spill Detection and Response Agency (NOSDRA), and the Federal Inland Revenue Service (FIRS) to provide necessary data needed to facilitate recovery of debts owed the Federal Government by Oil
and Gas Companies.
It also mandated the Committee on Finance to liaise with relevant agencies to ensure that the 77 oil and gas companies pay the respective accrued debts to the Federal Government.
These resolutions followed the adoption of a motion on the ‘Need to Recover Outstanding Debts owed the Federal Government by Oil and Gas Companies
in Nigeria’, moved by Hon. Ahmed Munir, from Kaduna.
He noted that “the Report by the Nigeria Extractive Industries Transparency Initiative (NEITI) that 77 Oil and Gas Companies operating in Nigeria are owing the Federal Government over N2.6 trillion.”
“The debts accrued from 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 Federal Government.
He expressed concerns that such a huge debt is being overlooked at a critical time when the country needs funding for its annual budget.”
He cautioned that “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.
