By Udeme Akpna & Wahab Abdullah
LAGOS—A new report by the Socio-Economic Rights and Accountability Project, SERAP, has disclosed how over $8 billion oil and gas assets were sold to Nigerian entities – especially onshore fields –between 2005 and 2015, and how the failure of companies to pay Capital Gains Tax, CGT, on the sale of the assets fuels poverty, underdevelopment and inequality in Nigeria.

Cross section of guests and the press at the launch

The report, titled: ‘The impact of non payment of capital gains tax and other levees in the oil and gas sector on the socio-economic development of the country’, was authored by Messrs Bimpe Balogun and Azeez Alatoye and presented at CITIHEIGHT Hotel, Lagos.

The report said: “The Goodluck Jonathan government also failed to collect tax on the transfer of Conoco Phillip Oil Company Nigeria Limited to Oando Hydrocarbon (Now Oando Oil Limited) through the acquisition of the shares of Conoco Phillips in Canada for $1.79 billion. The shares were acquired by Oando Energy Resources Canada.

“In recent years, economic inequality has soared to unprecedented levels in Nigeria, hampering poverty reduction efforts, fuelling political instability and presenting new threats to the full spectrum of human rights.

“The political will to improve framework and policies for the determination and payment of capital gains tax in the oil sector could generate much needed revenue for execution of government projects and provision of infrastructure and socio-economic development. As such, an improved framework has the potential to galvanise action to reduce poverty, underdevelopment, unemployment, and inequality.

https://newlive.vanguardngr.com/2018/10/minimum-wage-fg-govs-divided-over-figure/

Speaking at the event, human rights activist, Mr Femi Falana, SAN, said: “SERAP deserves commendation for the public presentation of this timely report. From the report not less than $270 million has not been recovered by the federal government, the amount recoverable has not been captured due to the refusal of DPR and NEITI to provided requested information on the oil companies that have divested interests in the oil and gas sector. SERAP should proceed to compel the two agencies to supply the information so as to update the report.

“Just yesterday, the NEITI disclosed that the NNPC and others have withheld the sum of $22.06bn and N481bn from the federation account. SERAP should collaborate with NEITI to collect the huge fund without any further delay.”

SERAP and the progressive extraction of the civil society must take special interest in the judgment of the Supreme Court which has ordered the federal government to recover 18-year lost revenue from oil giants under the Deepshore Offshore Inland Production Contract Act.”

“The report calls for massive advocacy and campaign to force recovery of unpaid capital gains tax over the past 10 years from those who have not accounted for such after disposal of their interest in oil and gas assets.”

https://newlive.vanguardngr.com/2018/10/faac-fg-states-lgas-share-n698-710bn/