TheCable

The house of representatives ad hoc committee on joint venture (JV) businesses has summoned the Federal Inland Revenue Service (FIRS) over the alleged non-remittance of appropriate taxes by oil companies in Nigeria.

The committee is investigating the structure and accountability of production-sharing contracts (PSCs) of Nigerian National Petroleum Corporation (NNPC) Limited.

Abubakar Fulata, chairman of the committee, at the committee’s public hearing in Abuja, on Wednesday, summoned Muhammad Nami, chairman, FIRS, over alleged tax evasion by oil companies.

According to the committee, the non-remittance of appropriate taxes by the oil companies in Nigeria had serious adverse effects on the economy.

It expressed worry over the inability of FIRS to have access to the stock certificate of crude oil, adding that it would be ridiculous for FIRS to rely on invoices produced by the oil companies instead of the stock certificate, which gives clearer pictures of the oil being lifted.

The committee also alleged that oil companies were not paying the required taxes while many of them collected huge amounts of money from federation accounts in the name of joint ventures with NNPC.

It further alleged that NNPC continued to pay money running into billions of dollars to oil companies in the name of joint venture despite a presidential directive halting it in 2018.

While attempting to respond, representatives of FIRS, a director and a special assistant, were stopped by the committee to make presentations as they insisted that only the chairman is expected to speak on behalf of FIRS.

However, the FIRS representatives had earlier told the committee that the service does not have access to the stock certificate of crude oil being lifted.

The representatives also said the agency only relied on the invoice produced and presented by the oil companies.

The committee, however, adjourned the sitting to November 21, 2022.

Meanwhile, on Tuesday, the committee raised concerns about oil companies in Nigeria operating without a certificate of acceptance on fixed assets (CAFA).

The oil companies include AGIP Energy Natural Resources Limited, Shell Nigeria Exploration Company Limited, and Chevron, among others.

CAFA is issued with evidence approval from the Institute for Industrial Development (IID) for the purchase of assets valued at N500,000 and above.

On the contrary, the oil companies operating in Nigeria claim to have a capital allowance from the government without a certificate.