Government loses N1.2tr tax revenue to crude oil price dispute
The pricing dispute between the International Oil Companies (IOCs) and the Federal Government has resulted in a revenue loss of over $4.04 billion (N1.232 trillion at N305-$1) in eight years, according to the Nigerian Extractive Industry Transparency Initiative (NEITI).
There are indications that the Federal Government may not be able to recover the money as the IOCs have adopted strategies to evade payment.
Over the years, the IOCs have used the Tax Appeal Tribunal (TAT), which has the final say on any tax issue, to avert the payment of huge revenue accruable to the Federal Government from oil production.
The Nigerian government is almost solely dependent on oil revenue to execute its programmes. The $4.05 billion would have ameliorated the financial challenges created by the economic recession, including funding of the budget for the development of the country.
SOURCE: The Guardian