NEWS
Tribunal Orders NLNG to pay FIRS $27.5m as 2016 Revised Corporate Income tax
The Tax Appeal Tribunal (TAT) has ordered the Nigeria Liquefied Natural Gas (NLNG) Limited to pay the Federal Inland Revenue Service (FIRS) 27.5 million dollars as full and final settlement of the revised companies income tax (CIT) for the 2016 assessment year.
This was part of the judgment of the Tax Appeal Tribunal (TAT) sitting in Abuja.
The five-member panel of TAT, chaired by Mrs Alice Iriogbe, entered the judgment in the terms of settlement agreed to by parties in the appeal.
The NLNG Ltd had, in the appeal marked: TAT/ABJ/APP/331/2022, filed a notice of appeal dated and filed on April 21, 2022.
The company, an appellant, had sued the FIRS, a Federal Government’s revenue agency, as sole respondent.
The NLNG prayed the tribunal to restrain the revenue agency from collecting the sum of $141. 75 million dollars from it as CIT for the year under review.
It challenged the FIRS’ notice of additional assessment dated Dec. 15, 2021, and the notice of refusal to amend (NORA) dated March 22, 2022.
In the appeal, NLNG argued that by the provisions of Clause 8(A) of the TCPAs (Time Charter Party Arrangements), the appellant Is contractually obligated to pay for the use and hire of the vessels.
This is at a daily hire rate, which consist of the Fixed and Variable Elements from the time of delivery of the vessels to the appellant and continuing until the time and date of redelivery i.e., handover date of the vessels by the appellant to BGT (Bony Gas Transport) at the end of the lease.”
The company said although the parties to the TCPAs agreed that the lease and the attendant lease payments will continue until the redelivery dates of the vessels which were to occur at the end of the agreed tenure of the lease, it became expedient and necessary for the appellant to replace the old steam vessels with more efficient Dual Fuel Diesel Engine vessels in order to reduce the appellant’s operating expenses.
It said in line with its business objectives, the firm entered into a termination agreement with BGT to exit the TCPAs prior to the expiration of the leases.
It said that the FIRS however took the position that the terminal costs were not reasonably and necessarily incurred for its business operations.
The NLNG therefore sought seven reliefs including “a declaration that, having regard to the TCPAs, the refit and drydock payments in the sum of 141.7 million dollars were ultimately incurred by the appellant without any duplication in the books of BGT.
“A declaration that the provision of Section 90 of the CITA (Companies Income Tax Act) Is inapplicable to the appellant in this appeal.
“A declaration that having regard to the provisions of the CITA, the TCPAs, the International Accounting Standard 16 and 17 and other applicable laws, the respondent was wrong in its decision to refuse to set aside/discharge the notice of additional assessment reference number: PDBA/CIT/AUD/16/207 dated 15th December, 2021.”
The gas company therefore sought an order setting aside the FIRS’ Notice of Additional Assessment for the reasons set out in grounds one to four and the accompanying particulars contained in this notice of appeal.
It equally sought an order of injunction restraining the FIRS, its agents, officers or privies, from further assessing the company to tax for the 2016 year of assessment as set out in the demand note reference number: PDBA/CIT/AUD/16/207 dated December 15, 2021, among other reliefs.
Delivering the judgement, the tribunal observed that parties had engaged in process of settlement even when the trial was ongoing in the matter.
The TAT, in the certified true copy of the judgement, which was delivered on Thursday and made available on Tuesday, said: “On the 10th July, 2024, parties filed a term of settlement in the tribunal.”
The panel held that in the terms of settlement signed by parties, the NLNG agreed to pay FIRS “the sum of USD$27,500,000 (Twenty-Seven Million, Five Hundred Thousand Dollars) as Full and final settlement of the Revised CIT Assessment and the subject matter of this appeal if payment is made on or before Friday, 12th July 2024.
“In furtherance of the above the appellant (NLNG) on Monday 8th July, 2024, duly remitted the said sum of USD$27,500,000 (Twenty-Seven Million, Five Hundred Thousand Dollars) to the respondent (FIRS), being the full and final settlement amount agreed upon by the parties.
“In the circumstance, the terms contained in the terms of settlement have been adopted and made judgement of this Honourable Tribunal.
“This is the judgment of this Honourable Tribunal.”
Earlier, in a ruling, the tax panel dismissed the NLNG’s interlocutory motion seeking to disqualify the tribunal from further sitting on the grounds that the company did not have confidence in the tribunal to adjudicate on the matter.
In the motion filed, the company had asked the tribunal to direct the chair person, Mrs Iriogbe, and another member in the person of Mr Ajayi Bamidele, who were former staff of FIRS before retirement, to recuse themselves from further participation in hearing of the matter as their presence in the panel posed likelihood of bias against the applicant.
Delivering the ruling, the tribunal said it had gone through the application and cannot see any cogent reason for it.
It agreed with the FIRS lawyer’s argument citing Section 59 of the FIRS Establishment Act 2007 (as amended) and Paragraph 8 of the 5th Schedule of the same Act.
“The appellant (NLNG) counsel also said that he does not have any reason to suspect that the panel would be biased but that other people out there might have a contrary view.
“However, in view of the statutory provisions quoted above, the only option probably open to the applicant would be to seek to invalidate the statutory provisions in a superior court of law.
“In view of the foregoing, this tribunal sees this application as being frivolous and it is hereby dismissed with no order as to cost,” the TAT ruled.(NAN)
By Laide Akinboade, Abuja
The Christian Association of Nigeria (CAN) on Wednesday, disassociate itself from Archbishop Chivir Chianson and the group he represents, following attempts to present himself as the General Secretary of the Association and associate CAN with a purported church mobilisation in support of a political candidate ahead of the 2027 general elections.
This was contained in a statement issued by the CAN President, Archbishop Daniel Okoh in Abuja.
Okoh insisted that Archbishop Chivir Chianson is not the General Secretary of CAN and has no authority or mandate to speak or act on its behalf.
According to the CAN boss, “Furthermore, the group he represents has no official affiliation, working relationship or institutional connection with CAN.
“CAN has not authorised, endorsed or mandated the individual or his group to organise, promote or undertake any political mobilisation in its name. Any political position, endorsement or activity attributed to them must not be mistaken for the position or activities of the Association.
“As the umbrella body representing Christians across Nigeria, CAN has a responsibility to defend the interests of the Christian community and contribute to national development. It will not allow individuals or groups with no official relationship with the Association to appropriate its identity or exploit its name to advance political or personal interests”.
Okoh therefore reiterated the commitment of CAN, “The Association wishes to reaffirm its commitment to political neutrality as the country approaches the 2027 general elections. CAN will continue to engage national issues objectively and hold political leaders accountable, irrespective of party affiliation, without endorsing or mobilising support for any political party or candidate”.
He also urged the members of the public, particularly Christians, as well as media organisations, to disregard any claim of official representation of CAN by the individual or his group.
“We also call on TVC News and other media organisations to exercise due diligence in verifying the credentials and institutional affiliations of individuals presented as representatives of the Association.
“CAN will take all appropriate steps to protect its name, identity and institutional integrity against unauthorised representation and misrepresentation”.
The National Drug Law Enforcement Agency (NDLEA), arrested 1,200 suspects and seized more than 30 tonnes of illicit substances in Edo in 2025, according to its Chairman, retired Brig.-Gen. Mohamed Buba Marwa.
Marwa disclosed this on Wednesday in Benin during a visit to the palace of the Oba of Benin, Oba Ewuare II.
Marwa, who was accompanied by senior agency officials, including NDLEA commandants in Edo and Delta, sought the traditional ruler’s support in the fight against drug abuse and trafficking.
He said that more than 15 million Nigerians were abusing drugs, representing about three times the global average, with devastating consequences for young people, families and communities.
“The drug scourge has continued to devastate our youth, our families and our communities,” he fumed.
Marwa said the problem affected all communities, including the Benin Kingdom, and required a collective response involving traditional institutions, religious organisations, civil society groups, government and the media.
“But most importantly, the traditional institution, which is arguably the most respected institution in Nigeria today,” he said.
He explained that the NDLEA’s responsibilities included enforcing drug laws and providing counselling, treatment and rehabilitation for people struggling with drug dependence.
Marwa also highlighted alternative development as a new pillar of the agency’s drug control strategy aimed at encouraging cannabis farmers to cultivate legal crops such as cassava, yam and maize.
He said cannabis accounted for 75 per cent of the 16 million kilogrammes of illicit substances seized by the agency nationwide in the past six years.
According to him, the initiative seeks to help farmers abandon illicit cultivation for legitimate livelihoods, with government support for infrastructure, including roads, schools, clinics and water supply.
Marwa said the programme had commenced as a pilot project in three communities in Ondo State, with the possibility of extending it to Edo.
He added that he had presented the proposal to the Edo governor, who welcomed the initiative.
The NDLEA chairman sought the Oba’s blessing and support in encouraging communities across the kingdom to shun drug abuse and trafficking.
Responding, Oba Ewuare II commended Marwa for his efforts against drug abuse and other social problems.
The traditional ruler said he had a suggestion for improving the agency’s operations and would communicate it privately to Marwa.
“I have a suggestion I will make in writing that I will not want to say here in public to NDLEA, as my own thinking on how to improve the work of NDLEA,” he said.
The Oba also acknowledged the importance of collective efforts in addressing societal challenges and wished Marwa and his delegation well.(NAN)
By Tony Obiechina, Abuja
Jaiz bank has denied involvement of alleged N104m fraud in its Jos branch.
In a statement by its Corporate Communications Department in Abuja on Wednesday, the bank said “Jaiz Bank Plc wishes to address recent media reports alleging institutional fraud involving a disputed ₦104 million investment arrangement in Jos, Plateau State”.
According to the statement, following a comprehensive review of transactions involving a former employee and some complainants, Jaiz Bank clarifies that the disputed funds were never received, booked, or registered under any official Jaiz Bank investment product or account.
Continuing, the state that internal records show no evidence of Bank-authorized investments, but rather indicate private transactions between the complainants and the former employee.
“The transaction details provided by the complainants do not align with Jaiz Bank’s established operational, regulatory, or authorization protocols.
“As the matter is pending before the High Court of Justice of Plateau State, Jaiz Bank urges the public and media to avoid drawing premature conclusions based on unverified public narratives.
“Jaiz Bank remains fully committed to ethical, Shari’ah-compliant finance, transparency, and cooperation with regulatory and judicial authorities to ensure a fair resolution”, the statement added.
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