‘Nigeria lost $2.1b in tax waiver to oil, gas firms’
A recent investigation carried out by Tax Justice and Governance Platform has revealed that between 2010 and 2014, Nigeria lost $2.1billion as revenue due to what is described as pioneer status scheme granted to oil and gas companies.
The report revealed that between 2009 and 2014, 22 oil and gas companies were given pioneer status from which Nigeria lost $54.1million in 2010, $147.2million in 2011, $728.3million in 2012, $1billion in 2013 and $179.3million in 2014.
The pioneer status referred to a tax holiday incentive designed by government and backed by law to encourage and promote certain industries, products and services designated as priority areas and growth drivers of the economy.
At the presentation of the report by the Tax Justice and Governance Platform yesterday in Abuja, discussants argued that the pioneer status given to oil and gas companies was not worth it, noting that as long as these companies are making profit, they will be adding little or nothing to the development of the nation. They gave an instance that employment figures available for 11 companies that made returns to the Federal Inland Revenue Service (FIRS) indicate that only 2,208 jobs were created which is noting compared to the fact that Nigeria lost $2.1billion government revenue to tax waivers to some of these industry.
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1 Comments
Surely those who approved the waivers must have had a clear knowledge of what the waivers were meant to achieve. When that failed obviously the suspicion to massive corruption ring connected with the waiver-authority and the recommendations committee cannot be ruled out. Why not initiate an unbiased Judicial probe of the waivers first? The Corporation/Companies granted the waivers could be called upon to account because unlike individual officers who make audacious claims of “executive orders” they are not exempted by that claim and being corporate entities they do not just retie or die as humans do.
We will review and take appropriate action.