Page 11 - AfrOil Week 37 2022

AfrOil POLICY AfrOil

Nigeria collects $6bn of unpaid oil taxes

NIGERIA NIGERIA’S federal government has announced further updates on remittances made to the gov-
the recovery of NGN 2.6 trillion ($6bn) of ernment by oil companies so far.
unpaid taxes from oil firms. “By the time we release the 2021 report, any
The money recovered follows interventions company owing Nigeria we have no choice
from the Nigerian Extractive Industries Trans- than to invite EFCC to take over and handle it
parency Initiative (NEITI) and the National as an economic crime,” Orji explained, noting
Assembly, and still does not amount to all of the that the impending release of the 2020 report
tax money owed. As of March 2022, the amount last year also encouraged companies to pay
outstanding in the hands of oil companies stood taxes, fearing that their names would be oth-
at $2.6bn. erwise published.
Speaking at a NEITI event held in Abuja, “Which shows that from the point we released
Executive Secretary Orji Ogbonnaya Orji that information a lot of money came in. None of
revealed that the group was prepared to work them disputed our report, rather they were giv-
with the Economic and Financial Crimes Com- ing excuses for why they did not pay,” he said.
mission (EFCC) and other government agencies NEITI’s management had repeatedly
to recover the rest of the money. The group may expressed concerns about the liabilities high-
activate its recent memoranda of understanding lighted in its reports against the backdrop of
(MoUs) with the EFCC and Nigerian Financial high demand for government revenue for
Intelligence Unit (NFIU) in an effort to help development projects. According to Orji, it is
recover the funds. the organisation’s duty to make data on Nige-
NEITI is due to release its 2021 report on ria’s extractive industries available to the coun-
money owed before the end of the year, providing try’s government.™

PROJECTS & COMPANIES

Tullow Ghana sued by oil and gas association

over alleged local participation violation

GHANA TULLOW Ghana, an oil and gas exploration the company “has been consistent in stead-
and production company, is being sued over the ily increasing contracts awarded to indige-
alleged violation of local content legislation, local nous companies and has no desire to replace
media report. indigenous Ghanaian companies with foreign
The Ghana Oil and Gas Service Providers companies.”
Association (GOGSPA), an advocacy, lobbying, Meanwhile, GOGSPA is seeking an Accra
consultancy, compliance and monitoring group, High Court (Commercial Division) order to
is seeking an interlocutory injunction to restrain restrain Tullow, its agents, assigns and any per-
Tullow from re-awarding any petroleum con- son acting under their instructions from violat-
tract being executed by indigenous Ghanaian ing appropriate laws on local content and local
companies to foreign joint venture companies. participation in the award of petroleum con-
The majority of Tullow Ghana’s production tracts in Ghana pending the determination of
comes from the Jubilee and TEN fields. The sub- the suit. A hearing of the motion is set for Octo-
sidiary of London-listed Tullow Oil has said it ber 10.
has no desire to replace contracted indigenous The association said it decided to sue
Ghanaian companies with foreign ones. following many complaints that services
In a statement issued, Tullow said that from reserved for indigenous Ghanaian companies
2010 to date it has awarded over 40,00 contracts in the upstream oil and gas sector were being
to indigenous companies, in addition to almost taken away and awarded to foreign venture
3,000 contracts awarded to joint venture compa- companies.
nies that include indigenous participation. GOGSPA said it first raised concerns with
“Out of the total contracts awarded valued Tullow in a June 2022 petition, but the company
at $16.83bn between 2010 and 2021, $11.24bn allegedly vowed to continue awarding contracts
worth of those contracts were awarded local exclusively reserved for indigenous companies
Ghanaian participation,” Tullow said, adding to foreign joint venture companies.™

Week 37 15•September•2022 www. NEWSBASE .com P11