Governor Nasir El-Rufai of Kaduna State

Economy: NNPCL responsible for financial distress in several states –Governor

*Governor Nasir El-Rufai of Kaduna State laments the grave financial situation in several states in Nigeria hinders most states from paying salaries and fulfilling their social contract to the citizens

Alexander Davis | ConsumerConnect

As several states of the Federation are struggling under the reported dwindling Nigerian economy, Governor Nasir El-Rufai of Kaduna State has lamented the inability of the Nigerian National Petroleum Company (NNPC) Limited to remit any revenue into the Federation Account has put many of them into severe financial distress.

It was learnt the NNPCL has not remitted money into the Account since the beginning of this year.

President Muhammadu Buhari (r) and Malam Mele Kyari, Group CEO of NNPCL, at the launch of the new state oil firm July 2022, in Abuja

El-Rufai raised the concern Monday, November 7, at the 2022 Tax Dialogue organised by the Kaduna State Revenue Service (KSRS) held in Kaduna, the state capital.

The Governor noted that the Federal and State Governments now rely on revenues and taxes generated by the Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS) for survival, report said.

The financial situation, he stated, has led to the inability of most states to pay salaries and fulfil social contract to their citizens.

In his submission at the event, Muhammad Nami, Executive Chairman of FIRS, emphasised the importance of tax dialogue as a tool for engendering tax compliance and a means of strengthening tax systems.

On the significance of dialoguing on tax payment, Bashir Jamoh, Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), also stressed the need for inclusivity, fairness and pooling expert ideas to aid tax policy formulation and administration.

They advised tax authorities must create effective communication and trust strategies and also ensure taxpayers receive value for taxes paid, which are the two key drivers of voluntary tax compliance.

Recall Governor El-Rufai recently said that the Federal Government had failed in the oil and gas business and should get out of the sector.

According to him, nothing has changed with the commercialisation of the NNPP since July 2022.

NNPC is Nigeria’s biggest problem and should be privatised, El-Rufai declared.

The governor had stated: “This year, NNPC has not brought N20,000 to the federation account.

“We are living on taxes.

It is PPTs, royalties, income tax and VAT that is keeping this country going because NNPC claims that subsidy has taken all the oil revenues. I don’t believe it.”

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