IRS Imposes N66.4 Billion Tax Fraud Charge on Saipem and Two Directors

The Nigeria Inland Revenue Service (IRS) has filed a six‑count criminal charge against oil and gas firm Saipem Contracting Nigeria Limited and two of its senior directors, Michele Poggi and Giani Di Petro. The charge alleges tax fraud amounting to N66.4 billion and $938,080 committed between 2014 and 2019.

The company and its directors were charged before Justice Daniel Osiagor of a Federal High Court in Lagos, following an investigation into the firm’s tax compliance records during the six‑year assessment period.

Prosecutor Moses Ideho informed the court that the defendants failed to deduct and remit multiple categories of taxes, including Companies Income Tax, Tertiary Education Tax, Capital Gains Tax, Withholding Tax, Value Added Tax, Stamp Duties, and the Nigeria Police Trust Fund levy, while carrying out taxable business operations in Nigeria. The alleged illegal acts contravene sections of the Federal Inland Revenue Service (Establishment) Act 2007 and the Companies Income Tax Act, Cap C21 Laws of the Federation of Nigeria 2004.

At the scheduled arraignment on Friday, the defendants were conspicuously absent but were represented by B. A. Sodipo, SAN, and three other lawyers. The defence informed the court that a Notice of Preliminary Objection had been filed on behalf of the defendants.

The prosecutor told the court that he had been served with the defendants’ notice on Thursday and requested time to respond. Consequently, Justice Osiagor adjourned the matter to June 29 for the hearing of the preliminary objection.

The charges allege that the defendants failed to remit taxes, submitted false returns, and wilfully neglected to pay assessed taxes, resulting in the large sum remaining unpaid to the Federal Government.