Nigerian Gov’t to Recover N553 Billion From Petroleum Transport Giants

The Nigerian government has announced measures to reclaim N553 billion in unpaid taxes from multinational petroleum transportation businesses operating in Nigeria.
This was revealed on Wednesday by Abdullahi Aliyu, Director, International Tax, Federal Inland Revenue Service (FIRS), during a conference sponsored by the Nigerian Chamber of Shipping (NCS) titled “Sensitising the Nigerian Maritime Industry on the New Tax Policy and Objectives.”
Aliyu went on to say that the money was amassed between 2010 and 2019 and would be useful in raising government income.
The FIRS chairman said that with Nigeria’s budget deficit of N11.34 trillion, the N553 billion unremitted taxes constitute 5.03 percent of the total and would be an alternative to borrowing to solve Nigeria’s economic challenges.
He went on to say that maritime businesses operating in dry cargo activities in Nigeria, as well as international airlines, had been following tax requirements that most players in the oil industry had ignored:
Oluwole Oni, Assistant Director, Tax, FIRS, stated that the FIRS has announced the planned taxing exercise in December 2021 to avoid disruptions in the vital global shipping sector.
Oni further stated that those who received the letters are required to respond in ways other than cash. The answer might be an acknowledgement of receipt, a clarification request, or payment.
President Bola Ahmed Tinubu took significant action earlier this month to resolve the sensitive problem of crude oil transportation back taxes, which has recently prompted tank owners to avoid operating in the country.
Zacchaeus Adedeji, the President’s Special Adviser on Revenue, disclosed that an agreement had been struck to prevent vessel withdrawals in order to preserve an uninterrupted supply of crude oil products.
He also said that a technical committee had been formed to address the issues at hand.
Adedeji, emphasising the committee’s function, stated that no vessel would be arrested or detained while the committee worked to reconcile the outstanding taxes.
President Tinubu’s aggressive efforts reflect his commitment to addressing the issue, maintaining the smooth operation of crude oil shipments, and preventing interruptions in the country’s oil industry.
On June 14, Nairametrics reported that certain oil tanker owners were fleeing Nigeria owing to the Federal Inland Revenue Service’s (FIRS) enforcement of backdated levies.
According to the article, numerous corporations got significant tax requests totaling millions of dollars, prompting at least two oil tanker owners to avoid Nigerian ports.

Source: Allnews Nigeria

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