The Nigerian goverment has commenced legal proceedings against Chinese owned oil firm, Addax Petroleum, for recovery of the sum of $3 billion alleged to be under-remitted royalties, and taxes by the company, according to Sahara Reporters.
In the documents filed before Justice Olatoregun on Friday, the Nigerian government said the funds are outstanding claims against the company under the Petroleum Profit Tax Act and Petroleum (Drilling and Production) Amendment Regulation 2003 over Oil Mining Leases (OMLs) 123, 124, 126, and 137.
Joined as respondents in the suit are Addax Petroleum Development Nigeria Ltd, Addax Petroleum Exploration Nigeria Ltd, the Nigerian National Petroleum Corporation (NNPC), the Ministry of Petroleum Resources/Department of Petroleum Resources, and the National Petroleum Investment & Management Services (NAPIMS).
Documents filed before the court by D.A. Awosika and partners, the chamber representing the Federal government in the suit indicated that the company piled up the $3 billion unremitted funds as a result of its illegal and irregular reliance on Side Letters dated 21st November 2001, 20th December 2001, and 24th August 2004 which were never gazetted.