By Naomi Oleribe
The President of Dangote Group, Aliko Dangote, has urged the government to ensure single-digit tax regime in the oil industry, in order to attract investment into Nigeria’s downstream sector, which has been losing foreign investors.
The Dangote Group president is canvassing for the single-digit tax as his conglomerate makes an inroad into the oil industry with the establishment of a refinery, which is projected to begin operation by next year.
He made his request known through a statement released on Sunday, covering his representation during the 2022 Nigerian Content Midstream and Downstream Oil and Gas Summit, held in Lagos.Dangote.
A statement by the chief corporate communications officer of Dangote Group, Tony Chiejina, stated: “Government should ensure a single-digit tax regime to encourage investment in the downstream sector.”
This comes amid the exit of International Oil Companies (IOCs) in the downstream sector, with firms like Shell, ExxonMobil, amongst other big foreign investors making their way out, citing quest for green energy as reason for their divestment.
Commenting on the role his firm’s refinery will play in the oil industry, Dangote stated that it would help stabilise the declining naira by excess availability of products for export to international market.
Meanwhile an oil and gas expert, Prof, Wummi illedare have argued that, Fiscal system must follow fiscal rules of general applications. emphasizing that Waiving the Nigeria Hydrocarbon Tax (NHT) for deep offshore terrain was ill-advised and the consequences on government access to revenue is imminent.
“The royalty schemes for onshore and shallow water terrains is progressive and encouraging. The dual tax system is not punitive, neither is it double taxation. The design is to allow government to target incentives to hydrocarbon development”, Prof. Iladare explained.