Chairman, House of Representatives Ad hoc Committee Investigating the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company (NNPC) Limited, Hon. Abubakar Fulata, at the sitting of his committee members in Abuja

‘All oil companies in Nigeria operating illegally’ – Reps, allege violation of tax laws by IOCs

Advertisements
Advertisements

House of Representatives Ad hoc Committee Investigating the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company (NNPC) Limited has indicted all the oil companies in Nigeria for operating without the Certificate of Acceptance on Fixed Assets (CAFA).

Chairman, House of Representatives Ad hoc Committee Investigating the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company (NNPC) Limited, Hon. Abubakar Fulata, at the sitting of his committee members in Abuja

The lawmakers further summoned all defaulting companies to appear before the committee for investigations, stated that the defaulting firms are without the CAFA issued by the Ministry of Trade and Investment which effectively legalises their operations in the country.

Chairman of the Committee, Hon. Abubakar Fulata made the disclosure at the resumed investigative public hearing of the committee in Abuja.

CAFA is generally issued to evidence an approval from IID for the purchase of assets valued at ₦500,000 and above, while capital allowance is granted to companies that have incurred qualifying capital expenditure for the purposes of a trade or business to generate tax.

The committee stated that most of the oil firms were making claims of capital allowance from the government without the certificate and as such may be compelled to make necessary refund to the government coffers.

The committee accused international oil companies (IOCs) including; Shell BP, Chevron, AGIP, Total oil companies, amongst others, of malfeasance amounting to billions of dollars.

Hon Fulata who reeled out the names of the affected oil companies at the hearing said that they must appear before the committee to clear the allegations.

He said that tax evasion by the oil companies was central to the committee’s investigation which covered a period of 32 years, precisely from 1990 to date.

He stressed that the companies were withholding information from the committee.

“Let me make it very clear that the issue of tax evasion is at the core of this investigation. We have given you ample time to respond but most of the companies deliberately withheld information.

“All companies in Nigeria do not have the CAFA certificates and they are enjoying capital allowance amounting to millions of dollars. Things they can’t do in their country they are doing in Nigeria. Unless you clear the malfeasance of this allowance, the committee would be compelled by the relevant agency to recover this money.

“I will like to urge the stakeholders in this investigation to appear as a matter of necessity to defend themselves against flagrant violation of Nigeria’s tax laws. For example, Total is to appear with evidence to defend itself against a malfeasance of $5.3 billion, in respect of OML 130.

“Total is also to appear to defend itself against malfeasance of $7.3 billion in respect of OML 130 PSC. The first one is Total Upstream Limited, the second one is Total Upstream Nigeria Limited.

“Number three, Addax Petroleum is expected to appear before this committee to defend itself against malfeasance of $2.8 billion in respect of OML 123 and 124 PSC. In addition, Total is requested also to appear to defend itself against allegations of $11.2 billion in respect of OML 138.Hon Fulata said.

“Again, Stardeep (Chevron) is to defend itself against $14.9 billion in respect of OML 127 and then, SO Exploration and Production to appear and defend itself against malfeasance of $6.6 billion in respect of OML 133 and Star Oil Nigeria Limited is expected to appear and defend itself against malfeasance of $3.28 billion.

“Then AGIP Energy and Natural Resources Limited is expected to defend itself against malfeasance of $62 million in respect of OML 116, Plc. Nigeria AGIP again is expected to appear and defend itself against malfeasance of $1.595 billion in respect of OML 125 and 134. Then, Shell Nigeria Exploration and Production company is expected to appear before this committee and defend itself against malfeasance of $7.557 billion.

“Addas Petroleum is expected to appear to defend itself against allegation of malfeasance amounting to $1.29 billion.

“In addition, Shell is expected to come and defend itself against malfeasance of $2.2, 572, 818,633 billion. Sheveron is invited to defend itself against malfeasance of $14, 674, 269,399 billion. Total, again, is expected to present itself and defend malfeasance of $1.385,302,139 billion. Then, Amin International is asked to appear before this committee and defend itself against the malfeasance of $302,159,600 million. 

“Now, Star Deep Exploration and Production Limited is asked to appear to defend itself against malfeasance of $1.497 billion in respect of OML 143. And then, Addas, again, to appear to defend itself against malfeasance of $3, 288, 233. 83 billion.

“These are just a few because the data is not yet completed. This is just a tip of the iceberg in terms of the malfeasance perpetrated by oil companies in Nigeria.”

The Lawmakers also directed the Clerk of the committee to invite the Registrar General of the Corporate Affairs Commission (CAC), Alhaji Garba Abubakar to the next sitting to answer to some concerns of the lawmakers.

“Clerk, write to invite the chief executive of the Corporate Affairs Commission at the next hearing”, Fulata said.

Leave a Reply

Your email address will not be published.