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Profit Tax: NEITI to refer defaulting oil, gas firms to anti-corruption agencies

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Orji Ogbonnaya Orji NEITI;s Executive Secretary
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The Nigeria Extractive Industries Transparency Initiative (NEITI) says it will report oil and gas companies that have defaulted in remittance of various profit taxes to the federation account.

Dr Orji Ogbonnaya Orji Executive Secretary of NEITI disclosed this while briefing newsmen on the 2019 oil and gas industry audit report and  Solid Mineral Industry audit report in Abuja, on Tuesday.

He said that 77 oil and gas companies operating in Nigeria were currently owing the  country 6.48 billion dollars  an equivalent of N2.659 trillion.

He noted the debts, which were identified in the Report, arose from failure of the companies to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals to the Federation Account.

He explained that a total of 143.99 million dollars is owed as petroleum profit taxes; 1.089 billion dollars as company income taxes and 201.69 million dollars as education tax.

Others, he  added  included 18.46 million dollars and 972,000 pounds as Value Added Tax; 23.91 million dollars and 997,000 pounds as Withholding Tax; 4.357 billion  dollars as royalty oil and  292.44 million dollars as royalty gas.

Also, 270.187 million and 41.86 million dollars were unremitted gas flare penalties and concession rentals respectively.

The Executive Secretary noted that the disclosure was important and timely in view of government’s current search for revenues to address citizens’ demand for steady power, access to good roads, quality education, fight insurgency and creation of job opportunities for the country’s teeming youths.

He added that NEITI was determined to help the Federal Government recover the money from the 77 companies, and advised the affected companies to ensure they remit the various outstanding sums against them before the conclusion of the 2020 NEITI audit cycle to the relevant government agencies responsible for collection and remittances of such revenue.

Orji also warned that NEITI would no longer watch while these debts continue to remain in its reports unaddressed, stating that it would provide all necessary information and data to sister agencies saddled with the responsibilities of recovering the debts into government coffers.

He said that the agency would also share the information and data with partner anti-corruption agencies with whom it had signed memoranda of understanding (MoU).

“A comparative analysis of what this huge sum of N2.65 trillion can contribute to economic development shows that it could have covered the entire capital budget of the federal government in 2020 or even used to service the federal government’s debt of 2.68 billion dollars in 2020.

“In 2021, if the money is recovered the N2.659 trillion could fund about 46 per cent of Nigeria’s 2021 budget deficit of N5.6 trillion and is even higher than the entire projected oil revenue for 2021.

“This is why NEITI is set to work with the government to provide relevant information and data to support efforts at recovering this money.

“The disclosure of this information is in line with NEITI’s mandate to conduct audits, disseminate the findings to the public to enable the citizens, especially the media and civil society to use the information and data to hold government, companies and even society to account.

“ It is important that the process of recovering this humongous sum be set on course to support government in this period of dwindling revenues,” he said.

On NEITI’s achievements, he said that within the short period of  re-constitution and inauguration of the NEITI Board.

It  achieved commencement of process of reviewing of NEITI Act to strengthen its powers and functions; timely publication and presentation of the reports.

Also, secured permanent office accommodation for the agency after 17 years of squatting on rent; sustained and diversified partnerships with key stakeholders and partners.

Other achievements he listed were the appointment of NEITI into the implementation Committee of the Petroleum Industry Act, PIA; the beginning  of the development of a five-year NEITI Strategic Plan (2022-2026) and NEITI Audit Automation Project.

Also, Nigeria’s involvement in Opening Extractives programme; NEITI’s appointment to lead the global EITI Contract Transparency Network; Designing of a new, functional and Interactive website and reconstitution of the civil society and communication sub-committee among others.

Also speaking, Chairman of the Board of NEITI, Mr Olusegun Adekunle, welcomed the achievements so far recorded and assured that a lot more needs to be done in the EITI implementation in Nigeria.

“To effectively undertake this task of ensuring prudent management of extractive resources, there is need for effective oversight of the implementation of the EITI standard by all relevant frontline agencies of government and companies.

“NSWG looks up to you for you to effectively monitor these guidelines and to ensure that the standards are mainstreamed in the covered entities’ daily operations”, he said.

He reiterated the commitment of President Muhammadu Buhari-led administration to EITI implementation in Nigeria.

According to him, President Buhari’s administration is passionate about EITI process because it served two key agenda of the government on strategic economic development through extractive sector, and in achieving transparency and accountability in the management of our natural resources under the anti-corruption agenda.

The Chairman assured members of the civil society and the media that the NEITI Board under his watch would do all within its power to sustain the existing partnership and ensure a more robust and cordial relationship with civil society groups.

He added that every input from the civil society and the media would receive speedy and due attention.(NAN)(

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Business & Economy

Dangote Refinery Will Generate ‘Massive Job Opportunities’ – Aliko

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Aliko Dangote
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The President of The Dangote Group, Aliko Dangote, on Monday, said his refinery will generate “massive” job opportunities for the teeming Nigerian youths.

He stated this in Lagos during the commissioning of the 650,000 bpd Dangote Petroleum Refinery and Petrochemicals by President Muhammadu Buhari.

The project is expected to churn out Premium Motor Spirit (PMS), diesel (AGO), aviation jet fuel and Dual-Purpose Kerosene (DPK), among other refined products.

“The refinery operation will generate massive job opportunities in their hundreds of thousands,” he said while highlighting the benefits of the refinery.

“The refinery will make available to our industries vital raw materials to a large range of manufacturers in the pharmaceuticals, food, beverages, construction and many other industries.”

The businessman also expressed thanks for the “massive” support for him and The Dangote Group towards the creation of the Dangote Petroleum Refinery and Petrochemicals plant.

He appreciated Buhari and Nigerians for the immeasurable support his company received from the inception of the project to its completion.

“What I want to share with Nigerians is actually to show my personal gratitude and that of The Dangote Group, for all the assistance that we got from the President, from the Federal Government of Nigeria, from even the President-elect, because he also set the pace by creating the Lekki Free Trade Zone as part of his dream.

“And also we want to thank most especially Governor Fashola, Governor Ambode and most especially Governor Sanwo-Olu; because they have given us all the assistance that we were looking for.

“We thank all Nigerians for giving us their support which is too numerous to mention,” the industrialist said.

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Dangote Refinery To Generate 12,000 Megawatts Of Electricity – CBN

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Dangote Refinery
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The Central Bank of Nigeria (CBN) has said that the newly inaugurated Dangote Petroleum Refinery and Petrochemicals will help Nigeria generate more power for its electricity sector.

Speaking today at the inauguration in Lagos State, Governor of the apex bank, Mr Godwin Emefiele, said the Dangote Refinery is expected to generate 12,000 megawatts of electricity.

He further stated that over 135,000 permanent jobs will be available to Nigerians as operations get underway.

According to him, it is also expected that the refinery saves Nigeria between $25 and $30 billion in forex annually.

Like a venture that continues to give, the refinery Emefiele says will further give the economy an inflow of $10billion yearly.

In his opinion, the Dangote Refinery is an indication that Nigeria can produce whatever it Needs.

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SANWO-OLU PRAISES BUHARI, TINUBU, DANGOTE CONTRIBUTIONS TO NIGERIA’S FIRST PRIVATE REFINERY

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President Muhammadu Buhari, Aliko Dangote, Lagos State Governor Babajide Sanwo-Olu ,Senate President Ahmad Lawan and others at the official Commissioning Dangote Refinery in Lagos
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LASG has provided enabling environment for private sector growth, says Dangote

Lagos State Governor, Mr. Babajide Sanwo-Olu, on Monday, said the stories of President Muhammadu Buhari; President-elect, Asiwaju Bola Tinubu and Chairman of Dangote Group, Alhaji Aliko Dangote are a testament that prosperity can be achieved when  leaders have shared vision for the people they are leading.

Sanwo-Olu shared three different stories on how President Buhari, Asiwaju Tinubu and Dangote are connected to the newly commissioned first privately owned refinery in Nigeria, the Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, said the three leaders have shown Nigerians that leadership is about consistency and commitment to Nigeria’s economic growth.

He said: “The vision of Aliko Dangote, President Muhammadu Buhari and incoming President Asiwaju Bola Ahmed Tinubu, is a story of possibility when men have a shared common vision, purpose and they have the possibility that things can happen, things can change and things can be prosperous for the people they are leading.

“These three men; Aliko Dangote, President Muhammadu Buhari, and President-elect Bola Ahmed Tinubu epitomise all the great qualities of great leadership. They have shown us that nothing can be something. They have shown us that leadership is about consistency. It is about showing that whatever it is that you believe in, give it all it takes and at the end of it you will see the results coming out.”

Governor Sanwo-Olu while commending Dangote, said the business mogul is a completely detribalised Nigerian who has impacted many lives positively.

He said: “To our son Alhaji Aliko Dangote, we are indeed truly proud that you have put Nigeria and indeed Africa on that world map in which you have done the very first. We are proud of your belief in your country and your belief in the youth that you are giving the opportunity to. We are proud of the fact that you are a Nigerian that is completely detribalised and you have imbibed it in many ways.

“It is about the opportunity this (refinery) has provided for all the youth and young people of our country. It is about the fact we can say to them the work these three men – Mr. President, Alhaji Dangote, and our incoming president have done and will continue to do.

“It is about our future. It is about providing an opportunity for the youth because over 150,000 direct and indirect jobs that will be created are for our youths; young leaders that are in their 20s and their 30s for them to believe that indeed Nigerian is a place for them. Nigeria considers them as an important and veritable tool in developing and ensuring the very best.

“I want to also thank our President-elect who propelled a vision of what we are enjoying today. As governor and as Lagosian, he was the main architect of the modern history of the trajectory of Lagos and we are hopeful and praying that when he comes in as president, all of those additional vision that he has will come to reality.”

Governor Sanwo-Olu, who was part of the birth of the Lekki free zone in 2006 during the tenure of Tinubu as Governor of Lagos State, praised the host communities for showing hospitality to investors in the area.

“I want to use this opportunity to thank our host community. This community has been the host to several firsts in our country and I want to thank all of them; from the traditional rulers to all of the indigenous citizens that have continued to reflect the true spirit of Lagos to be able to show hospitality and accommodation in everything that we are about,” he said.

Governor Sanwo-Olu also commended President Muhammadu Buhari’s eight years in office, saying the people of Lagos State are proud of what the President has done for Nigeria.

He said: “You (President) have spent 2,915 days out of 2,922 days that you have. Mr. President, you have spent 99.98 percent of your time. Mr President history will certainly judge you well. We in Lagos are happy. This is your third trip to the Lekki Free Zone in less than a year.

“We are proud of you. We are indeed excited that you have thrown everything you have into it and as you bow down, I might not have the opportunity of holding a microphone again, I want to say to you, that on behalf of Lagos State, we are truly proud of the things that you have done for us in this country.”

Speaking earlier, Dangote commended Lagos State Government under the leadership of Governor Sanwo-Olu for providing an enabling environment for private sector growth, particularly the Dangote Refinery.

He said: “Lagos State Government has been exceptionally remarkable in their efforts toward the completion of this project.

“The Lagos State Government under the leadership of Governor Babajide Sanwo-Olu has provided an enabling environment for private sector growth in the state and this project. It has allowed us to invest over $30 billion in different sectors of the industry.”

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