Nigeria has revived a dispute with shipping companies, demanding that non-resident shipping lines settle outstanding tax bills, amounting to millions of dollars, by the end of the year. The demand renews a conflict that previously led to a spike in freight costs and caused some tankers to avoid Nigerian waters. The Federal Inland Revenue Service emphasized the importance of complying with Nigerian tax laws and urged international shipping companies to address their obligations promptly.
Nigeria has reignited a tax dispute with shipping companies, instructing non-resident shipping lines to pay their outstanding tax bills by December 31. The conflict, initially revealed in June by an industry group, led to a surge in shipping costs for oil from Nigeria and prompted some vessels to avoid the country’s waters. The Federal Inland Revenue Service emphasized the need for compliance with Nigerian tax laws and urged international shipping companies to fulfill their obligations immediately. The dispute, previously linked to a glut of unsold oil, resulted in the creation of a committee to reconcile companies’ obligations in collaboration with oil sector regulators and the Nigerian National Petroleum Co. While the revenue service aims to enforce tax laws, it expressed a desire not to disrupt shipping operations.
Nigeria’s tax revenue as a percentage of GDP is relatively low at about 11%, prompting the government to set up a task force to boost this share to 18% within three years. The tax bills for foreign shipping companies form part of this strategy to enhance tax revenue. The Federal Inland Revenue Service did not specify the potential consequences for non-payment but emphasized its commitment to enforcing tax laws while respecting taxpayers’ rights.
