On Monday, the Nigerian Federal Government took swift action to prevent foreign oil vessel owners from leaving Nigeria and withdrawing their services due to alleged excessive tax back charges. These shipping companies had received demands from the Federal Inland Revenue Service (FIRS) for unpaid taxes from 2010 to 2019, ranging from $400,000 to $1.1 million per vessel, totaling tens of millions of dollars.

To address this issue, the Special Adviser to the President on Revenue, Zacheus Adedeji, conducted an interactive session with shipping stakeholders in Abuja. He emphasized the importance of vessels operating in and out of Nigeria and assured stakeholders in the oil and gas sector that steps would be taken to prevent disruptions in the flow of products.

The problem stemmed from demand notices issued to vessel owners in accordance with tax laws, requiring them to remit outstanding taxes. Adedeji confirmed the formation of a technical committee tasked with resolving the contentious issues and reconciling the backlog of taxes. He emphasized that vessels would not be arrested or detained while the committee worked towards a resolution.

While the government aimed to ensure compliance with tax laws, it also made it clear that Nigeria would not succumb to blackmail. Adedeji stressed that the country had laws that needed to be respected and obeyed. The technical committee, comprising regulatory bodies and government representatives, would address concerns, reconcile tax payments, and establish a process for future compliance.

During the meeting, it was announced that six companies had received approval to import petroleum products in July 2023. The Managing Director of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDRA), Farouk Ahmed, stated that other companies had also applied for permits to import petroleum. He clarified that the Nigerian National Petroleum Company Limited (NNPCL) did not have the authority to grant approval for petroleum importation.

The NMDRA emphasized its openness to companies interested in importing fuel and highlighted the relatively lenient guidelines in place to encourage importation. Six companies had expressed their intention to import fuel in July, indicating their access to foreign exchange. The NMDRA assured the public that there would be no supply or distribution gaps, as the Nigerian National Petroleum Corporation (NNPC) had a 30-day fuel sufficiency. Updates on progress and achievements would be provided in due course.

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