House of Representatives has set up an ad hoc committee to interface with the 77 oil and gas companies operating in Nigeria with a view to recovering the N2.6 trillion they reportedly owe Federal government.
The committee is chaired by the Deputy Chief Whip, Hon. Nkeiruka Onyejeocha.
The resolution followed a motion titled “Urgent Need to Recover Outstanding Debts owed the Federal Government by Oil and Gas Companies in Nigeria”, presented at the plenary by Hon. Ahmed Munir.
Munir, in the motion, recalled the Report by the Nigeria Extractive Industries Transparency Initiative (NEITI) that 77 Oil and Gas companies operating in Nigeria owe the Federal Government over N2.6 trillion.
He said that the debts if recovered will help to boost the economy.
“The debts accrued from 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.
“Such a huge debt is being overlooked at a critical time when the country needs funding for its annual budget.
“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.
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”, he said.
Adopting the motion, the House urged the Nigeria Extractive Industries Transparency Initiative (NEITI), the National Oil Spill Detection and Response Agency (NOSDRA), and the Federal Inland Revenue Service (FIRS) to
provide necessary data needed to facilitate recovery of debts owed the Federal Government by the oil and gas companies.