The House of Representatives adhoc committee investigating the Joint Venture (JV) businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company Limited (NNPCL) says all the oil companies in Nigeria are operating without Certificate of Acceptance on Fixed Assets (CAFA).
Chairman of the Committee, Abubakar Fulata who disclosed this at the investigative public hearing of the committee, stated that the certificate is issued by the Ministry of Trade and Investment to legalise their operations.
Mr Fulata said that tax evasion by the oil companies was central to the committee’s investigation which covered a period of 32 years, precisely from 1990 to date.
“All companies in Nigeria do not have the CAFA certificates and they are enjoying capital allowance amounting to millions of dollars. Things they can’t do in their country they are doing in Nigeria.
I will like to urge the stakeholders in this investigation to appear as a matter of necessity to defend themselves against flagrant violation of Nigeria’s tax laws. For example, Total is to appear with evidence to defend itself against a malfeasance of $5.3 billion, in respect of OML 130. Total is also to appear to defend itself against malfeasance of $7.3 billion in respect of OML 130 PSC.
The first one is Total Upstream Limited, the second one is Total Upstream Nigeria Limited. Number three, Addax Petroleum is expected to appear before this committee to defend itself against malfeasance of $2.8 billion in respect of OML 123 and 124 PSC. In addition, Total is requested also to appear to defend itself against allegations of $11.2 billion in respect of OML 138.
Again, Stardeep (Chevron) to defend itself against $14.9 billion in respect of OML 127 and then, SO Exploration and Production to appear and defend itself against malfeasance of $6.6 billion in respect of OML 133 and Star Oil Nigeria Limited is expected to appear and defend itself against malfeasance of $3.28 billion.
Then AGIP Energy and Natural Resources Limited is expected to defend itself against malfeasance of $62 million in respect of OML 116, Plc. Nigeria AGIP again is expected to appear and defend itself against malfeasance of $1.595 billion in respect of OML 125 and 134.
Then, Shell Nigeria Exploration and Production company is expected to appear before this committee and defend itself against malfeasance of $7.557 billion. Addas Petroleum is expected to appear to defend itself against allegation of malfeasance amounting to $1.29 billion.
“In addition, Shell is expected to come and defend itself against malfeasance of $2.2, 572, 818,633. Chevron is invited to defend itself against malfeasance of $14, 674, 269,399. Total, again, is expected to present itself and defend malfeasance of $1.385,302,139.
Then, Amin International is asked to appear before this committee and defend itself against the malfeasance of $302,159,600″.
Fulata explained that most of the companies were making claims of capital allowance from the government without the certificate and as such may be compelled to make necessary refund to government coffers.
The committee chairman, added that this is just a tip of the iceberg in terms of the malfeasance perpetrated by oil companies in Nigeria.
He directed the clerk of the committee to invite the Registrar General of the Corporate Affairs Commission (CAC) to answer to some concerns of the the lawmakers.
source:https://radionigeria.gov.ng/