The Nigerian Petroleum Company Limited (NNPCL) has withheld $262.6 million in taxes owed to the Federal Inland Revenue Service (FIRS), according to a report from the Federation Allocation Account Committee Post-Mortem Sub-Committee (PMSC) meeting held in August 2024.
The withheld amount is tied to the Road Infrastructure Tax Credit Scheme (RITCS), a government initiative that allows private companies to invest in critical road infrastructure projects in exchange for tax reliefs.
The report revealed that NNPCL made monthly deductions of $52.51 million between February and June 2024 from payments due for Joint Venture (JV) Gas and Company Income Tax (CIT). These funds have been earmarked specifically for the RITCS.
“Members may recall that the Sub-Committee reported that NNPCL had made deductions in respect of the Road Infrastructure Tax Credit Scheme… so far, a calendarized sum of $52,509,484.28 was deducted each for the months of February to June 2024, totalling $262,547,421.40,” the report noted.
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