Nigerian lawmakers to to investigate debt owed by oil companies

Nigeria’s House of Representatives has revealed plans to constitute a 12-member Adhoc Committee to investigate the allegations that oil and gas companies are heavily indebted to the government.

This followed a motion moved, amended and adopted on the urgent need to recover outstanding debts owed the government by oil and gas companies in Nigeria.

Presenting the motion, Ahmed Munir from Kaduna State, quoted a NEITI report that 77 oil and gas companies operating in Nigeria are owing government to the tune of N2.6 trillion.

“Also notes that the debts accrued from the failure of the firms to remit Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax, Royalties, Penalties and Concession on rentals to the Federal Government

“Concerned that such a huge debt is being overlooked at a critical time when the country needs funding for its annual budget.

“Cognizant that if debts are recovered, the money could be used to service some of the Federal Government’s debts as well as fund up to 16.2 per cent of the 2022 budget deficit

“Also cognizant that recovery of the debts is critical in this period of dwindling revenues especially as the Covid-19 pandemic has grossly affected the country’s economy.”

While expressing concern that such debt is being overlooked Mr Munir described the recovery of the debt as critical especially as Nigeria witness dwindling revenue due to the Covid-19 Pandemic that affected the country’s economy.

After two motions of amendments, Speaker Femi Gbajabiamila expressed concern that oil and gas companies can hold such an amount thereby denying government revenue to execute its activities.