Nigerian Parliament Indicts Agip, MTN, Glo, Others Of Tax Evasion

Globacom, Airtel, 9Mobile and co. Here are names of companies the House of Representatives Committee on Public Accounts found questionable for tax offenses.

The Chairman of the House of Representatives Committee on Public Accounts, Oluwole Oke has accused some firms operating in Nigeria of evading tax.

Speaking while receiving the Minister of Industry, Trade, and Investment, Otunba Niyi Adebayo, on Thursday, Oke said that several companies operating in the country were in the habit of not paying statutory taxes to the government, causing a revenue shortage for the operation of public services.

“There is a company that puts up a show and usurps the functions of NEPZA who are supposed to remit its operating surplus. But its licensees have undermined the agency. Millions of dollars that are supposed to go into NEPZA’s coffers are going into private pockets. That is why we are trying to find out if there is a need to review existing laws because the Parliament will not allow the country to continue to bleed.

“MTN gave us a certificate of acceptance worth N2.6tn and claimed to be the highest taxpayers in the country. We are asking them to provide us with evidence of how they got those certificates. That is where we are right now.

“Globacom, Airtel, and 9Mobile are running away, but the law will catch up with them. We are aware that they have spent so much on their investments, and so, don’t want to be a party to dragging their names in the mud. But they must come before parliament to defend the capital allowances they have collected.”

The chairman also said that some licensees claimed to have made payments to the ministry “which we cannot see.”

Oke said, “For example, AGIP claimed to have paid millions of dollars to you. I checked the records of your submission and cannot find even $1m traceable to a single company.

“They also filed for capital allowance with FIRS, and FIRS has given effect to that without the certificate of acceptance issued by the Ministry of Industry. We have asked for evidence of exception and there is none. We have also asked for a list of the assets they imported that qualified and inspected, which the FIRS acted on.”

Speaking further, he said, “Nigeria is bleeding. We are borrowing daily to finance our budget and the Minister of Finance has said the reason we are borrowing is because we are not collecting the revenue we are supposed to collect.

“The Ministry of Industry, Trade and Investment has issued some instruments which earned companies tax breaks and tax holidays. But this scheme has been abused by the companies. When some of these companies appeared before this committee, we noticed, from their presentation, elements of tax evasion.”

He added, “For example, China Harbour got a waiver of N5bn to import nails and wire nets. In my village, we have a company that manufactures nails, but the cost of manufacturing nails locally is higher than those imported. So, how do we encourage local production?

“The same company invaded some of the schemes of the government and they are seeking to have pioneer status. We also have a company that has existed in Nigeria since 1979 and has never paid one kobo to the government. ALSCON has been in operation and has not paid a single kobo to the government coffer.”

The Minister had told the House Committee that several African countries were lobbying companies registered and operating in Nigeria to exit and relocate to their countries.

Adebayo explained that the African countries, including Ghana, had increased their capital allowances to companies, which had consequently diverted a lot of investments from Nigeria. He noted that one major factor that was making it difficult for more firms to leave Nigeria was its population.

The minister said that the Nigerian Government was looking for ways of increasing the level of new investment in the country and sustaining the existing ones, saying, “We must support investment growth in Nigeria. It is public knowledge that getting these investments is increasingly becoming difficult today.”