NNPCL Withhelds $262.6 Million Taxes Owed to FIRS

The Nigerian Petroleum Company Limited (NNPCL) has withheld a substantial sum of $262.6 million in taxes owed to the Federal Inland Revenue Service (FIRS).

This action is part of the Road Infrastructure Tax Credit Scheme (RITCS), which allows private companies to invest in critical road infrastructure and offset their tax liabilities.

According to a report from the Federation Allocation Account Committee Post-Mortem Sub-Committee meeting held in August 2024, NNPCL made monthly deductions of $52.51 million from February to June 2024.

These deductions were taken from amounts due for Joint Venture (JV) Gas and Company Income Tax (CIT).

"Members may recall that the Sub-Committee reported that NNPCL had made deductions in respect of the Road Infrastructure Tax Credit Scheme from the amount due to FIRS JV Gas and CIT taxes.

So far, a calendarized sum of $52,509,484.28 was deducted each for the months of February to June 2024, totaling $262,547,421.40," the report stated.

This development comes amid ongoing controversy surrounding fuel subsidy payments, which were officially removed in May 2023. Despite this, there have been claims of continued subsidies.

NNPCL has clarified its position, stating that it is not paying subsidies but rather addressing fuel importation shortfalls between the company and the federation.

Adding another layer to the fiscal landscape, NNPCL has also requested the Nigerian government to pay a N2.6 trillion foreign exchange differential claim for fuel importation between August 2023 and June 2024.