Saipem in hot water! FIRS slams $57m, €14m Tax Evasion charges on oil giant

By Akin Kuponiyi

The Federal Inland Revenue Service (FIRS) has launched a fresh legal offensive against Saipem Contracting Nigeria Limited in a bid to recover alleged unpaid taxes totalling $57.75 million and €14.49 million, owed to the Federal Government of Nigeria.

Two separate amended criminal charges have been filed before a Federal High Court in Lagos by a ten-member legal team from the FIRS Litigation and Prosecution Department, headquartered in Abuja.

The charges accuse Saipem of failing to meet its statutory tax obligations while operating in Nigeria over several years.

In the first amended seven-count charge, marked FHC/L/907C/24, the FIRS alleged that between 2010 and 2014, Saipem failed to file accurate and complete Companies Income Tax (CIT) returns, covering tax liabilities amounting to $42,068,874.35.

This omission, the prosecution argued, violated Section 55 of the Companies Income Tax Act (as amended) and constitutes a punishable offence.

The charge further stated that the company, during the same period, failed to issue tax invoices for services rendered in the course of its business activities, services valued at $34.65 million, contravening Section 29 of the Value Added Tax Act of 1993 (as amended).

In a second, more expansive ten-count charge marked FHC/L/908C/24, the FIRS alleged that Saipem is liable for additional unpaid taxes amounting to $15,684,463.29 and €14,494,977.68, also relating to activities carried out between 2010 and 2014.

The company is again accused of submitting incomplete and inaccurate returns, violating provisions of the Companies Income Tax Act.

Beyond underreporting its tax liabilities, the company is also accused of deliberately refusing to appear before tax authorities when summoned, failing to provide required documentation for tax audits, and not registering with the FIRS as mandated by law.

According to the charges, these acts constituted a willful attempt to evade tax obligations and undermine the legal framework governing corporate taxation in Nigeria.

Trial in both cases is scheduled to commence on October 6, 2025, at the Federal High Court in Lagos, where Saipem will be expected to respond to the serious allegations levelled against it.