DisCos insist companies paid all FG, state taxes

The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, yesterday, said electricity distribution companies under the association paid necessary taxes in the sector.

He said the taxes paid include, the minimum Company Income Tax (CIT), Withholding Tax (WHT) and Value Added Tax (VAT).

Reacting to a recent comment attributed to Chief Economist of PriceWaterhouse Coopers (PwC), Dr. Andrew Nevin earlier in the week, Oduntan said: “As responsible corporate citizens, all of our member DisCos take their tax obligations to the federal and state governments, as applicable, seriously. As a result, the DisCos diligently pay all necessary taxes that apply to their operations.

Nevin, at a power sector roundtable organised by Mainstream Energy Solutions Limited was quoted to have declared that no Distribution Company (DisCo) in Nigeria has paid any tax to the Federal Government since 2013 when they were privatized, because they have been “on a loss-making track” since then.

Oduntan in statement acknowledging Nevin’s effort to highlight the challenges of the sector stated that the claim relating to Discos not paying FG taxes is misleading, incorrect and not supported by the facts.

“We will like to encourage all parties interested in the growth and success of the Nigerian Electricity Supply Industry to constantly diligently verify their information, to avoid creating more challenges than that which already exist in the sector,” Oduntan stated.