The House of Representatives on Wednesday directed the Federal Inland Revenue Service (FIRS) to compute the volume of crude oil trading by Trafigura and other marketers operating in Nigeria for appropriate tax assessment, The Punch reports.
The directive followed a revelation by the FIRS that one of the major traders, Trafigura, had never paid tax on its operations to the government. The FIRS made the submission to the ad hoc committee of the House investigating the refined product exchange agreement contracts between the Nigerian National Petroleum Corporation (NNPC) and the crude trading firms.
The swap arrangement involved the exchange of crude oil for refined petroleum products in which the corporation gave out part of its 445,000 barrels daily share of crude oil to the trading companies. According to the Pipelines and Product Marketing Company (PPMC), Trafigura lifted 12.5 million metric tonnes of crude oil out of Nigeria between 2011 and 2014 and did not pay any taxes to the Federal Government on the excuse that it was not registered in Nigeria.