General
General Electric in Multi-Million Dollar Tax Deduction Mess
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.”
By Modupe Gbadeyanka
A hotline number, 0800 123 5264, for Nigerians to report any MRS Oil Nigeria Plc filling stations selling Premium Motor Spirit (PMS), commonly known as petrol, above the approved pump price of N739 per litre, has been released by Dangote Petroleum Refinery.
The private refiner said the number was now active nationwide, enabling consumers to promptly report violations and help maintain fair pricing across over 2,000 MRS stations.
This measure follows the refinery’s recent commencement of nationwide PMS sales at N739 per litre—a strategic intervention aimed at stabilising fuel prices and easing the financial burden on Nigerians during the festive season.
“We encourage Nigerians to avoid purchasing PMS at inflated prices when locally refined fuel is available at N739 per litre.
“Report any MRS station selling above this price by calling our hotline. Together, we can ensure that the benefits of this price reduction reach every consumer,” the company stated in a statement.
The organisation stressed its mission to deliver affordable, high-quality fuel while safeguarding national economic interests, reaffirming its commitment to steady supply, backed by a guaranteed daily output of 50 million litres, and warned against attempts to create artificial scarcity or manipulate supply.
Regulatory authorities have been urged to remain vigilant and take decisive action against unpatriotic practices.
By refining locally at scale, Dangote Refinery is reducing Nigeria’s dependence on imports, conserving foreign exchange, stabilising the Naira, and strengthening energy security. This initiative represents a significant milestone in the country’s journey toward sustainable energy solutions and economic recovery.
The refinery also issued a stern warning against attempts by unscrupulous operators to create artificial scarcity in response to the price reduction, calling on government agencies to act decisively.
“Any attempt to create artificial scarcity or manipulate supply to frustrate recent price reductions is unpatriotic and unacceptable. We urge regulatory authorities to remain vigilant and take firm action against such practices, especially during this critical festive period,” the statement added.
Consumers were advised to resist purchasing fuel at inflated prices when cheaper, high-quality alternatives are readily available.
By Bon Peters
The Airport Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA) at Omagwa Rivers State has praised the Customs Area Controller for Customs Area 1 Command, Comptroller Salamatu Atuluku.
At the end-of-the-year party attended by stakeholders, including the leader of the association’s chapter, Mr Charles Onyema, said the customs officer has done well in stakeholder engagement and trade facilitation.
At the event held last Friday, he said his association has been enjoying a very cordial relationship with other organisation in the ecosystem.
“You can see what is happening today, everybody is working together and our operations here are seamless,” he noted.
He stated that apart from creating a very robust business environment for his members and other stakeholders to operate, he has taken a decision to build and commission a befitting ANLCA Secretariat which would be completed soon and be commissioned by the ANLCA national president, Mr Emenike Nwokeoji.
The ANLCA chapter chief said since “Comptroller Salamatu Atuluku assumed office at Customs Area 1, Port Harcourt Command, it has been a different ball game, facilitating trade and increasing Revenue generation.”
“I remember I told her she was a mother during her maiden visit to the airport.
“You know when you have a woman in charge of an affair, food will not lack, compassion will not lack and motherly love will not lack.
“She is very wonderful in stakeholder engagement, revenue generation and trade facilitation,” Mr Onyema enthused.
Projecting into the future, Mr. Onyema said the year 2026 would be better for his members, adding that he has advised them on financial discipline which he said would help them during the trying period.
By Adedapo Adesanya
The federal government has declared Thursday, December 25, and Friday, December 26, 2025, as public holidays to mark Christmas and Boxing Day respectively.
The government also declared Thursday, January 1, 2026, for the New Year celebration.
The declaration was contained in a statement issued on Monday by the Permanent Secretary of the Ministry of Interior, Mrs Magdalene Ajani, on behalf of the Minister of Interior, Mr Olubunmi Tunji-Ojo.
According to the statement, the Minister urged Nigerians to reflect on the values of love, peace, humility and sacrifice associated with the birth of Jesus Christ.
Mr Tunji-Ojo also called on citizens, irrespective of faith or ethnicity, to use the festive season to pray for peace, improved security and national progress.
He further advised Nigerians to remain law-abiding and security-conscious during the celebrations, while wishing them a Merry Christmas and a prosperous New Year.
Business Post reports that on these public holidays – the foreign exchange market, the Nigerian Exchange (NGX), as well as the NASD Over-the-Counter (OTC) Securities Exchange will not open to trade.
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