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General Electric in Multi-Million Dollar Tax Deduction Mess

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By TheCable

General Electric (GE) withheld tax in excess of $3 million from its payments to Arco Group Plc, a Nigerian oil servicing company, according to documents seen by TheCable.

There is strong evidence backing Arco’s allegation, but GE has told TheCable it would not comment “for confidentiality reasons”.

In one of the documents, Arco claimed that GE deducted 10% as withholding tax for a contract between 2006 and 2015 as against the 5% stipulated by Nigerian laws.

GE, a multinational company operating in the Nigerian oil and gas sector, had engaged Arco for the supply of local personnel.

“Our interpretation of the contract of supply is that the applicable WHT rate should be 5% in line with the Federal Inland Revenue Service Circular No. 2006/02 dated February 2006,” Arco wrote, in a letter addressed to the Federal Inland Revenue Service (FIRS) seeking clarification on the applicable withholding tax rate to the contract.

“However, the IOC insisted that the rate is 10% in line with the contract for technical services in the same circular under reference. However, section 3.5 of the circular (Lines 8-11) referred to what should be classified as technical services states: the use of industrial machinery/equipment to provide a service does not render it to be technical because industry position requires that only arrangements that involve a transfer of technology, should be classified as technical.”

In a mail dated June 21, 2017, Fasilat Ransome-Kuti of General Electric Corporate, who was subsequently introduced as a senior manager from Price Waterhouse Coopers (PwC), advised ARCO Group to seek clarification from the FIRS.

“We request you seek the clarification from the tax policy unit of FIRS in Abuja as only such clarification will suffice and give us comfort,” she wrote.

“Also, we are unable to suspend the remittance of WHT on payment to Arco as this will amount to non-compliance. There is penalty for non-compliance and this will be an additional cost to GE.”

In a letter dated November 2, 2017, and signed by Tunde Fowler, FIRS chairman, he said the only part of the contract that is subject to 10% tax is office rent which is to be deducted by Arco and remitted to FIRS.

Responding to the letter, GE said they had engaged PwC to confirm from FIRS.

It also expressed willingness to liaise with the FIRS on how the excess will be treated in the event the service upholds its position.

“This is based on the fact that the tax has already been deducted and remitted to the FIRS by GE. It is our view that the FIRS should either refund the excess WHT to Arco or apply it as a credit against Arco’s future tax liability,” GE wrote.

In a letter dated March 6, 2018, and signed by Benjamin Omotomiye, its group head of finance and admin, Arco demanded a refund of the funds deducted within the eight-year period.

He wrote: “What we are requesting now, is the refund of 50% of total WHT deducted from Arco’s invoices from the period 2006 to 2015 as earlier communicated to you in our letter dated November 6, 2017, following the FIRS’ clarification as follows:

   – €56,577.61 (Fifty-six thousand, five hundred and seventy-seven euros, sixty-one cents)

   – $2,923,642.36 (Two million, nine hundred and twenty-three thousand, six hundred and forty-two dollars and thirty-six cents)

   – N360,482,041.19 (Three hundred and sixty million, four hundred and eighty-two thousand, forty-one naira and nineteen kobo).”

When TheCable reached out to GE for a reaction, the company refused to comment.

“On the questions raised, we can confirm the existence of a contractual relationship between Arco Group and ourselves,” Obagbemi Olusegun of BHGE Communications Sub-Saharan Africa, said.

“However, due to the confidentiality provisions governing this relationship, we are unable to disclose details of commercial dealings between both parties.

“I trust you understand our position on this.”

TheCable

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Lagos to Probe Alakija Building Collapse, Prosecute Culprits

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By Adedapo Adesanya

The Lagos State Government has said it will investigate the collapse of a three-storey building in the Alakija area of the state and prosecute anyone found culpable, while warning residents against ignoring evacuation notices issued on distressed structures.

The Commissioner for Information and Strategy, Mr Gbenga Omotoso, gave the warning on Friday while commiserating with the families of the victims, describing the incident as unfortunate.

“Our first duty is to commiserate with the families who lost their loved ones in this unfortunate incident. On behalf of Governor Babajide Sanwo-Olu, we sympathise with them and pray that such a tragedy never occurs again,” he said.

Latest update from the state government put the casualty figures at 27 rescued and nine fatalities, including a baby.

He disclosed that 27 persons were rescued alive from the rubble, while nine others lost their lives despite overnight rescue efforts.

“By the grace of God, we have been able to rescue 27 people. Unfortunately, we lost nine persons and this is very sad. We share the pain of the affected families,” he said.

According to the commissioner, the collapsed building had earlier been identified as distressed and marked for evacuation, but some occupants allegedly returned after initially leaving.

“As you can see, these buildings had been marked as distressed and people were asked to leave. Unfortunately, some residents returned after pretending to have moved out, leading to this tragic outcome,” Mr Omotoso said.

He added that other distressed buildings in the area would be demolished to prevent similar incidents.

“All the buildings that have been identified as defective will go down. We cannot wait until another tragedy occurs before taking action. The protection of lives remains our priority,” he said.

Mr Omotoso also condemned the construction and occupation of buildings beneath high-tension power lines, describing the practice as unsafe and unacceptable.

“It is not done in any civilised society. Such developments show disregard for safety regulations and contempt for the law. Government will continue to clamp down on such violations,” he said.

He assured residents that a full investigation into the collapse had commenced, stressing that anyone found responsible would face prosecution.

“The owners of the building are under investigation. Anybody found complicit in this tragedy will face the law. They will be prosecuted because no one is above the law,” he said.

The commissioner said most of the rescued victims sustained no life-threatening injuries, while those requiring further medical attention had been taken to the hospital.

He also praised the Lagos State Emergency Management Agency, the Lagos State Fire and Rescue Service, the police, the military, neighbourhood safety personnel and other emergency responders for their swift response.

“I must commend all our emergency responders who worked tirelessly throughout the night to save lives and bring the situation under control,” he said.

Mr Omotoso urged residents to prioritise safety over economic considerations.

“The most important lesson from this incident is that nobody should prioritise livelihood over life. Once life is lost, everything is lost. No business is worth risking human lives for,” he added.

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Deregistration: Peter Obi’s NDC to Challenge High Court Judgment

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By Modupe Gbadeyanka

The Nigeria Democratic Congress (NDC), founded by Mr Seriake Dickson, has reacted to reports claiming that a Federal High Court in Lokoja, Kogi State, has ordered its deregistration by the Independent National Electoral Commission (INEC) over an alleged logo infringement.

In a statement on Friday, the political party, which presented Mr Peter Obi as its presidential candidate for the 2027 general elections, said it had instructed its lawyers to challenge the judgment said to have been delivered by Justice Isah Dashen.

“Our attention ​has been drawn to a ruling by the Federal High Court sitting in Lokoja this morning, wherein His Lordship, Honourable Justice Isah Dashen, gave a ruling on an application filed by an unregistered association known as Peace Movement Party.

“The public knows that by December 2025, the Nigeria Democratic Congress, as an association, complained of INEC’s refusal to register us as a political party, whereupon we proceeded to the Federal High Court. The Federal High Court upheld our constitutional right to freedom of association under the Constitution and compelled INEC to register us, which INEC did.

“Since then, we have started political activities, embarked on the registration of members, held congresses from ward to national levels, held conventions, and concluded primaries to all offices following INEC’s timetable. We have been fully participating in all INEC activities without let or hindrance.

“NDC also fielded candidates, and fully participated in the just-concluded bye elections in Nasarawa and Enugu states.

“Candidates for the House of Assembly, House of Representatives, Senate, Governorship, Presidential, and Vice-Presidential positions have been duly nominated, and we are in the process of formally submitting them to INEC in accordance with INEC’s timetable.

“The association that filed the complaint is unknown to us. The Peace Movement Party (PMP) is not a registered political party in Nigeria. They claimed, in a motion (not even a substantive suit or appeal), that the court should set aside its earlier judgment on the purported ground that, in 2015, they had sought registration as a political party with the victory sign as their symbol and were denied.

“It is important to note that they are not an association applying for registration now under the exercise that started last year. They are also not a registered political party in Nigeria participating in the political process now, as we are.

“Furthermore, the court, having delivered a final judgment in our suit against INEC, had become functus officio. The court had also dealt with all related issues concerning associations claiming they wanted to use the same symbol and colours. The court, in its judgment, overruled INEC when those issues were raised, and there is no appeal against that judgment.

“Therefore, we are surprised that, on an application by an association claiming that it wanted to register as a political party with the victory sign in 2015—an association that is not a registered political party and is not seeking registration now to participate in the current political process—His Lordship came to the conclusion that they have locus standi, and furthermore, that he has jurisdiction to do what he did.

“Accordingly, we have been informed that His Lordship made an order setting aside the court’s earlier decision of December 2025.

“There was no order directing our deregistration. However, we are dissatisfied with the decision that has been made, and we have instructed our team of lawyers to immediately proceed to the Court of Appeal to challenge the jurisdiction and propriety of His Lordship’s order.

“We assure the general public, and particularly our candidates at all levels, that our party is on course. The NDC has not been deregistered, and we are challenging today’s order at the Court of Appeal as soon as possible. We have no doubt that justice will be done.

“We condemn efforts by those who seek to shrink the democratic space and stifle opposition voices and alternatives. Nigerians have a right to a full range of opinions, ideas, and alternatives, and political platforms and candidates should be allowed to participate in the 2027 general election process, which has already gone midway,” the statement read.

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Makinde Extends Curfew in 10 Local Governments by 24 Hours

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By Adedapo Adesanya

The Governor of Oyo State, Mr Seyi Makinde, has approved the extension of the curfew imposed on 10 local government areas bordering the Old Oyo National Park by an additional 24 hours.

The development was announced in a statement issued by the Secretary to the State Government, Mr Musibau Babatunde, and signed by the Special Adviser to the Governor on Media, Mr Suleiman Olanrewaju.

The state government had, on June 23, 2026, imposed a dusk-to-dawn curfew from 4:00 pm to 8:00 am on the affected local government areas as part of measures to address the prevailing security situation.

With the extension, the curfew, which was initially scheduled to last 48 hours, will now remain in force until Saturday, June 27, 2026.

The affected local government areas are Oriire, Orelope, Irepo, Saki West, Saki East, Atisbo, Itesiwaju, Iseyin, Olorunsogo and Atiba.

The government urged residents of the affected areas to continue cooperating with security agencies and to comply fully with the directive as efforts continue to safeguard lives and property.

This development follows the abduction of 39 students and seven ⁠teachers in an attack targeting several schools in Nigeria’s southwestern Oyo State in May.

The attack took place in ⁠Ahoro Esinele community in Oriire district, targeting a secondary school and two primary schools, according to officials. With over 40 days in captivity, all rescue efforts have so far not yielded results.

Mass ⁠kidnappings by armed groups have become a serious security challenge in Nigeria in recent years, with criminal gangs exploiting weak security to target travellers, students, and rural communities for cash payments. Schools are often targeted, although such ‌attacks ‌used to be rare in the southwest of the country.

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