The Nigerian National Petroleum Company (NNPC) Ltd.’s Joint Venture (JV) Business and Production Sharing Contracts (PSCS) Ad hoc Committee on Structure and Accountability has called Total Upstream to testify over tax claims totaling $85 billion.
This was said by Rep. Abubakar Fulata, the committee’s chairman, on Tuesday at an inquiry hearing in Abuja. He said that practically all of Nigeria’s oil corporations collected capital allowance and investment tax claims without a Certificate of Acceptance of Fixed Assets (CAFA), in violation of the country’s current regulations.
Typically, a CAFA is given as proof of authorization for the purchase of assets costing $500,000 or more. READ: Reps Call PPPRA CEO to Testify About Unremitted Funds
In addition, Fulata summoned Shell Nigeria Exploration Company, AGIP Energy Natural Resources Ltd, Chevron, and other oil corporations, claiming that the majority of them were requesting capital allowances from the government without a certificate.
Companies found to be at fault, he claimed, would have to pay the required returns to the government. He claims that all businesses in Nigeria operate without CAFA certifications and are given capital allowances worth millions of dollars.
“These are things they cannot do in their country but doing in Nigeria. Unless you clear the malfeasance of this allowance, the committee would be compelled by the relevant agency to recover this money,” he said. # Reps Summon Total, Others over $85bn Tax
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