Leadership (Abuja)

Nigeria: FG Loses N65.23 Billion Revenue to Waivers, Tax Exemptions

The federal government yesterday conceded that a whopping N65.23 billion was lost to tax exemptions and waivers granted to some companies, ministries and state governments between 2012 and 2013.

Information released by the Federal Ministry of Finance indicated that Shell Petroleum Development Company Nigeria Limited, Niger Delta Power Holding Company and Netcoo Dietsmann Company Limited were among the highest beneficiaries of the waivers and exemptions.

A breakdown of the N65.23bn waivers granted between 2012 and 2013 showed that Shell Petroleum got N16.295bn while Niger Delta Power Holding followed with N15.122bn.

Other beneficiaries are the Ministry of Health, N4.9bn; Rivers State Ministry of Power N3.76bn; Ministry of Power, N4.17bn; Geometric Power Ltd, N1.3bn; and Netcoo Dietsmann Company Ltd, N6.63bn.

Similarly, Cocoa Association of Nigeria got N1.33bn as waivers, Olam Nigeria Ltd N1.13bn, River State government N2.08bn, and Clinton Health Access Initiative N1.19bn.

The ministry, in an attempt to defend the policy, said on Sunday that the objective of waiver was to curb the abuses and inefficiencies of the previous regime.

It said, "The objective of the waiver policy, the implementation of which was reviewed and strengthened in late 2011, is to curb the abuses and inefficiencies of the previous regime. There is clear evidence that it is working to boost key sectors of the economy. Against this background, the dismissal of government's efforts to reform a waiver policy which created an uneven playing field is astonishing."

Waivers/Exemptions granted in 2012/2013 - Gas Sector:

Import duty exemptions

Shoreline Power Company Limited Lagos, N117.7m.

Shell Petroleum Dev Co Nig Ltd (plants, machinery & spare parts, N8.53bn.

Plants machinery, spare parts materials & accessories for new & ongoing gas projects, N7.765bn.

Guinness Nig Ltd: Natural gas machinery, equipment & spare parts, N136.68m.

Netcoo Dietsmann Company Ltd: Machinery plants, equipment, spare parts, accessories for the utilisation of gas, N331.622m.

Machinery, equipment & spare parts for natural gas to generate power IPP, N378.440m.

Frontier Oil Ltd, Lagos: Machine rise, plants, equipment, spare parts, accessories for the utilisation of gas N175.091m.

Nigeria Petroleum Development Coy, Benin City Same as above N267.344m.

Golden Sugar Company Ltd, Lagos Same as above, for the second phase of the sugar plant N172.913m.

Power Sector

The honourable commissioner, Min of Power & Energy, no state mentioned Machinery, equipment N4.17bn

Rivers State Min of Power: Power transformer and equipment N3.76bn.

Geometric Power Ltd: Plant machinery equipment & spare parts N1.3bn.

Niger Delta Power Holding Company Ltd: Electrical equipment and materials N15.12bn.

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