The House of Representatives has urged relevant agencies to provide the data needed to facilitate the recovery of debts owed to the federal government by oil and gas companies.
The call came as a result of the unanimous approval of a motion by Rep. Ahmed Munir (APC-Kaduna) in plenary on Wednesday.
The Nigeria Extractive Industries Transparency Initiative (NEITI), the National Oil Spill Detection and Response Agency (NOSDRA), and the Federal Inland Revenue Service were among the organizations involved (FIRS).
Munir, who introduced the motion, stated that a NEITI report revealed that 77 Nigerian oil and gas companies owed the federal government over N2.6 trillion.
He stated that the debts arose from the firms’ failure to remit to the government Petroleum Profit Tax, Company Income Tax, Education Tax, Value Added Tax, Withholding Tax, Royalties, Penalties, and Rental Concession.
He believes that such a large debt is being overlooked at a critical time when the country requires funding for its annual budget.
“Aware that if debts are recovered, the funds could be used to service some federal government debts as well as fund up to 16.2% of the 2022 budget deficit.”
“Also cognizant that debt recovery is critical in this period of dwindling revenues, particularly as the Covid-19 pandemic has severely impacted the country’s economy,” he said.
The Speaker, Rep. Femi Gbajabiamila, mandated the Committee on Finance to work with relevant agencies to ensure that the 77 oil and gas companies pay their accrued debts to the government.