Lagos (Platts)--26Nov2012/642 am EST/1142 GMT
The Nigerian Extractive Industry Transparency Initiative, which audits the country's oil industry, said Monday it was now ready to invoke sanctions on oil and natural gas companies operating in the country in a bid to recover $9.8 billion of debt owed in taxes and royalties either unpaid or underpaid over the last 10 years. "NEITI can no longer sit down and watch and allow these recoverable funds to be in the hands of the companies at a time when the Federal Government is searching for funds to finance the deficits in the annual budgets," NEITI chairman Ledum Mitee said at a stakeholders' meeting. "We have resolved henceforth to invoke relevant sanctions under Section 16 of the NEITI Act against any company found to have rendered false information or failed to provide statements of accounts" due to NEITI. While a defaulting company faces a fine of up to N30 million ($189,000) under the NEITI law, the auditors also have to power to recommend that the president revoke the defaulting company's operating license. Article continues below...Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
The Nigerian Extractive Industry Transparency Initiative, which audits the country's oil industry, said Monday it was now ready to invoke sanctions on oil and natural gas companies operating in the country in a bid to recover $9.8 billion of debt owed in taxes and royalties either unpaid or underpaid over the last 10 years. "NEITI can no longer sit down and watch and allow these recoverable funds to be in the hands of the companies at a time when the Federal Government is searching for funds to finance the deficits in the annual budgets," NEITI chairman Ledum Mitee said at a stakeholders' meeting. "We have resolved henceforth to invoke relevant sanctions under Section 16 of the NEITI Act against any company found to have rendered false information or failed to provide statements of accounts" due to NEITI. While a defaulting company faces a fine of up to N30 million ($189,000) under the NEITI law, the auditors also have to power to recommend that the president revoke the defaulting company's operating license.
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According to Mitee, NEITI made the decision because of its "concern for the looming threats to our oil-centric dependent economy." NEITI said earlier this month that oil companies owed $9.8 billion in unpaid or underpaid taxes and royalties, and that relevant government agencies had made little or no effort to recover the funds. NEITI did not specify which companies owed taxes and royalties. Foreign oil companies operating in Nigeria including Shell, Chevron, ExxonMobil, Eni and Total. Nigerian President Goodluck Jonathan has been under pressure to clean up the country's oil industry, which pumps more than 2 million b/d. A presidential panel set up in February to probe oil and gas payments turned in a damning report recently that detailed huge losses in revenue due to corrupt practices.--Staff, newsdesk@platts.com--Edited by Jonathan Fox, jonathan_fox@platts.com
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