The federal government has given ship owners operating in the country three months’ grace to pay up their outstanding tax liabilities to the Federal Inland Revenue Service (FIRS).
Some are owing several millions of dollars in tax liabilities covering over 10 years.
The government which also stated that it would not enforce the law for six months to allow for the reconciliation of all outstanding noted that a technical committee comprising the regulator, which is NUPRC, NMDRA, NNPC, FIRS, and the Presidency, in the Office of Chief of Staff, SA Energy and SA Revenue to resolve the issues within the six month period.
The Special Adviser to the President on Revenue, Zacheus Adedeji disclosed this at an interactive session with ship owners at the Presidential Villa, Abuja, where he warned that Nigeria cannot afford not to have vessels move in and out of the country.
Some foreign-owned oil vessels had wanted to flee Nigeria and withdraw their services, alleging excessive tax charges.
They had received demand notices from Federal Inland Revenue Service (FIRS), in line with the extant laws of the country on tax liabilities covering ten year period from 2010 to 2019, and ranging in amount from $400,000 to $1.1 million per vessel, aggregating it to reach tens of millions of dollars.
“So, we’ve agreed to give the parties three months to come to the conclusion and we will also give a grace period of six months, when we will not enforce any of these laws, just to allow for reconciliation’, Adedeji said at the meeting.
“In essence, no vessel or ship will be detained or delayed. So, we give this six months break for them so that they can reconcile with this technical committee that we set up.
“Nigeria, as you know, is open for business and we are business-friendly, as you’ve seen from what we’re doing and what we will do.
“So, we are open, but that is not to say that anybody will take advantage of the country. We have the law and the law must be respected”, he said.
He allayed the fears of the stakeholders within the oil and gas sector, spelling out the agreement reached to avert vessel withdrawal so as not to disrupt the flow of products.
He said the problem arose from the demand notice to the vessel owners issued in accordance with extant tax laws to make their remittances.
Adedeji, however, warned that Nigeria would not succumb to blackmail as its laws must be obeyed.
“However, we will not detain or arrest any defaulting ship or vessel because this is what is causing panic.
“We’ve sent them demand notice and the agreement is that we should give them some time. So, we’ve agreed to set up a technical committee to resolve these issues.
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