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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

Kaduna refinery will begin production in December – NNPCL Boss, Kyari

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Melee-Kolo-Kyari-NNPC-GMD
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The Group Managing Director of the Nigerian National Petroleum Company Limited, NNPCL,Mele Kyari has disclosed that the refinery in Kaduna State will be ready for production by December 2024.

He disclosed this during a meeting with the Independent Petroleum Marketers Association of Nigeria and the Major Energy Marketers Association of Nigeria in Abuja.

He disclosed that operations at the Port Harcourt refinery are scheduled to begin in two weeks.

According to Kyari: “We did a mechanical completion of the (Port Harcourt) refinery, that was what we said in December. We now have crude oil already stocked in the refinery. We are doing regulatory compliance tests that must happen in every refinery before you start it, and I assure you that this Port Harcourt refinery will start in the next two weeks.

“Completing the mechanical work means that you are done with the rehabilitation work, now you have to test to see how it works. Of course, we have also completed the mechanical work on the Warri refinery.

“It is also undergoing regulatory compliance; processes that we are doing with our regulator, and this will soon be completed and it will be ready.

“The Kaduna refinery will be ready by December. We have not reached that stage in Kaduna, but we promise Kaduna will be delivered by December.”

 

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Edun Blames Economic Hardship On Free Printing Of Naira During Buhari’s Govt

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Wale-Edun
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Minister of Finance, Wale Edun, stated this on Wednesday when he appeared before the Senate Committee on Finance chaired by Senator Sani Musa.

The Federal Government has disclosed that the free printing of naira notes for eight years, under the previous administration went into the hands of a privileged few, without corresponding productivity, resulting in the country’s current economic situation.

Minister of Finance, Wale Edun, stated this on Wednesday when he appeared before the Senate Committee on Finance chaired by Senator Sani Musa.

While elaborating on measures to revamp the economy, the Finance minister vowed to thoroughly audit the 22.7 trillion naira, and mop up the monies from the market and use it to pay the central bank to give the government a balanced book.

Responding to questions, the finance minister addressed the issue of waivers on customs duty running into trillions of naira, promising to overhaul the system, rejig it and implement a technology and payment system that would correct all anomalies in place.

He further disclosed that a total of 13 trillion naira was collected as non-oil revenue in 2023.

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Harsh Economy: FG To Begin Distribution Of Grains Nationwide 

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The Federal Government will begin the distribution of grains nationwide to cushion the impacts of the hardship in Nigeria.

Minister of Agriculture and Food Security Senator Abubakar Kyari disclosed this on Monday.

“Dear Fellow Nigerians,” he wrote on his official X handle. “In these trying times, I extend my sincere compassion to those affected by the hardships in the country. I understand the gravity of the situation, especially with the unfortunate event of foodstuff warehouse looting.

“Amidst these challenges, I want to assure you that our commitment to your well-being remains resolute. We shall commence the distribution of 42,000 metric tons of grains, as approved by Mr. President, across the 36 states of the federation as one of the programs to be rolled out this week.

“We are working hand in hand with NEMA and the DSS to ensure that the grains get to the right people in the right packages and quantities. Furthermore, 58,500 metric tons of milled rice from mega rice millers will also be released into the market for stabilization.”

The minister who hailed the resilience of the Nigerian people, urged them to back President Bola Tinubu’s government in its quest to address the challenges facing the country.

“I acknowledge the strength of the Nigerian people, and it is this resilience that will guide us through these difficult times. Let us stand together to support Mr. President in his strive for a better Nigeria,” Kyari said.

“Our government under the leadership of President Bola Ahmed Tinubu is committed to addressing these challenges and working towards a more secure and prosperous future for all.”

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