Commits to engaging widely on controversial tax bills
The Senate, yesterday, (Tuesday, December 3) said it would probe the accounts of the Nigerian National Petroleum Company Limited (NNPCL), over alleged NGN 8.48trn and $2bn (NGN 3.6 trillion) in unpaid petrol subsidies and taxes, respectively.
The Upper Chambers had approved the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper; however during the debate on the report of its Joint Committees on Finance and National Planning & Economic Affairs, presented by Chairman Musa Mohammed Sani, the Lawmakers were triggered by reports from the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilisation, Allocation, and Fiscal Responsibility Commission ( RMFAC), revealing alleged withheld funds, including petrol subsidy claims of NGN 8.48 trillion and unpaid taxes of $2 billion (NGN 3.6 trillion).
The Senate’s commitment to investigating the accounts of the national oil company was also triggered by confirmation from the Office of the Auditor-General of the Federation that it had received all necessary documents to verify NNPCL’s N2.7 trillion fuel subsidy claims against the Federal Government.
Consequently, the Senate presided by Senate President Godswill Akpabio mandated its committees on finance, petroleum, and gas to investigate allegations of withheld funds by the NNPCL.
Chairman, Senate Committee on Finance, Senator Sani Musa, while briefing journalists said that the Senate will unravel the circumstances behind the Revenue shortages as well as the counter accusations between the NNPCL and the Office of the Account general.
He said; “I will speak on the issue of revenue remittance whereby the office of the account general is claiming this amount is what has been remitted or NUPRC saying this is what we have done or saying that this what we have been able to realise from production and remitted to the Consolidated Revenue Fund of the Federation.
“Or what NNPC is telling us that what they have remitted, is the 9 Trillion that NNPC sent to the accountant general’s office or NEITI claiming that NNPC has not remitted ?? Or is the 7 Trillion that NNPC is saying that they have remitted ?
“So we need to look at it and which area is the NNPC talking about being owed? Because they said they have done their own part, that it is the Government that is supposed to settle them a certain amount of money.
“So our own concern is about revenue shortages, we want to know , where are those shortages with the fact that we realise what is due to the Federal Government.
On our own we want to know where the money is and who is supposed to remit what. So if we know that we are done with our own aspect of the findings.
On the Tax Reform Bills , Sani Musa said his committee will engage in wider consultations before embarking on the public hearing over the landmark bills.
He said the tax reform bills are sensitive fiscal documents that should be handled with care even as he said it was the way to go.
He said: “Another aspect which is very sensitive is tax reform. Every country that wants its economy to change will, from time to time, have to look at those parameters to move the country forward.
“I have said it times without number on the floor that tax is not a tool of economic growth, what you will see that will change the face of the economy of any nation is production and it is out of that production that you can make and realise the taxes.
“So, for me, the issue of Tax Reform is before us and we are doing wider consultation.
“It’s not about this region or that region. For me, it’s about Nigeria and what is good for me should also be good for my brothers while what is good for my brothers should also be good for me.
“Nigerians should allow the committee and the National Assembly to do the needful and at the right time, we shall make the right statement about this.”
