NNPLC Withheld $262.6 Million in Taxes Owed to FIRS

The Nigerian National Petroleum Company Limited (NNPLC) withheld $262.6 million in tax payments due to the Federal Inland Revenue Service (FIRS) between February and June 2024. The withheld funds were connected to the Road Infrastructure Tax Credit Scheme (RITCS), a program allowing private companies to invest in critical road infrastructure in exchange for tax credits.

Sources revealed that NNPLC used the RITCS to offset its cooperative gas tax and corporate income tax obligations, reducing the tax payments owed to FIRS. Monthly deductions under this scheme totaled $52,509,484.28, resulting in the final withheld amount of $262,547,421.40.

This development occurred amid ongoing debates over oil subsidy payments, which were officially terminated in May of the previous year. Despite the end of subsidies, NNPLC has been involved in discussions with the federal government about shortfalls in fuel imports, further complicating its financial situation.

As this issue unfolded, NNPLC’s approach to managing its tax obligations through the RITCS may attract closer scrutiny from FIRS and other stakeholders, especially given the broader implications for Nigeria’s revenue generation efforts.