Over 75 oil companies owing Nigeria N2.66tn – What this means for Buhari’s govt

OSBC
29 September, 2021

The Federal Government is owed N2.659 trillion ($6.48 billion) by 77 oil and gas companies, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed.

NEITI said the indebtedness is linked to failure to pay various taxes, including company income tax, which accounts for $1.089 billion, value added tax debt is $18.46 million and £972,000.

Further breakdown shows that withholding tax debt is $23.91 million and £997,000, petroleum profit tax $143.99 million, education tax $201.69 million, royalty oil and gas is $4.357 billion and $292.44 million respectively.

While debt attributed to concession on rentals is $41.86 million, and unremitted gas flare penalties account for $270.187 million.

NEITI Executive Secretary, Ogbonnaya Orji, made the disclosure during a media session on the implementation of the Extractive Industries Transparency Initiative (EITI) in Nigeria.

Impact of the oil firm’s debt on Nigeria’s revenue and debt issue

The N2.659 trillion debt attributed to the 77 oil companies in Nigeria comes at a time the Federal Government is struggling to expand its revenue, which is mostly gulped by debt servicing.