Oil & Energy
General Electric, Arco’s Tax Controversy Continues To Generate Ripples
The controversial tax remittance disputes between General Electric and Arco Group Plc have continued to generate ripples, even as the company awaits final resolution.
Documents made available to our source show that GE, a multinational company operating in Nigeria, had engaged Arco, an indigenous Nigerian oil servicing company, for the supply of local personnel.
But Arco in one of its letters dated June 5, 2018, claimed that GE deducted 10 per cent as withholding tax for the contract between 2006 and 2015, against the five per cent stipulated by Nigerian law.
The company said the applicable tax rate should be five per cent in line with the FIRS Circular No. 2006/02, dated February 2006.
The firm however alleged that GE insisted that the rate is 10 per cent in line with the contract for technical services.
In June 2017, Arco wrote GE demanding compliance based on the position of the Lagos State director of FIRS, with claims that the tax filings of both companies fall within Lagos jurisdiction and that the office is competent to give official interpretation of any circular issued by the FIRS.
But in its response, GE directed the firm to write to the Abuja office of the FIRS.
According to Fasilat Ransome-Kuti, who replied on behalf of GE, only such clarification could give the firm comfort’.
“We will not take action on any letter from any other tax office,” she added.
On July 11, 2017, Arco wrote the FIRS seeking clarification on the controversial remittance.
“Our interpretation of the contract of supply is that the applicable WHT rate should be 5% in line with the Federal Inland Revenue Service Circular No. 2006/02 dated February, 2006,” said the firm in the letter signed by Nejoh John.
“However, section 3.5 of the circular (Lines 8-11) referred to what should be classified as technical services states: “…the use of industrial machinery/equipment to provide a service does not render it to be technical because industry position requires that only arrangements that involve a transfer of technology, should be classified as technical,” wrote Arco in a letter seeking clarification from the Federal Inland Revenue Service, FIRS.
The firm also argued that other IOCs it worked for in the past applied WHT rate of five per cent on services rendered to them by Arco.
The FIRS in its response dated November 2, 2017, said the only part of the contract where 10 per cent tax applies is office rent which is to be deducted by Arco and remitted to the FIRS.
GE in its response letter dated January 18, 2018, seen by PREMIUM TIMES, said it would engage its consultant, Price Waterhouse Coopers (PwC), to confirm the technical basis of the conclusion and advise it as appropriate.
Arco in its response, said there was no basis for GE’s attempt to clarify FIRS’ clarification and thus demanded immediate payment of its outstanding invoices underpayments.
“What we are requesting now, is the refund of 50% of total WHT deducted from Arco’s invoices from the period 2006 to 2015 as earlier communicated to you in our letter dated November 6, 2017, following the FIRS’ clarification as follows,” wrote Ben Omotomiye, Group Head Finance and Admin, Arco.
“1. €56,577.61 (Fifty-six thousand, five hundred and seventy-seven euros, sixty-one cents).
“2. $2,923,642.36 (Two million, nine hundred and twenty-three thousand, six hundred and forty-two dollars and thirty-six cents).
“3. N360,482,041.19 (Three hundred and sixty million, four hundred and eighty-two thousand, forty-one naira and nineteen kobo).”
Beginning from the second week of July, several weeks-long efforts by PREMIUM TIMES to get GE’s side of the story proved abortive.
In the last week of July, a spokesperson of the company, Obagbemi Olusegun of BHGE Communications Sub-Saharan Africa, promised to reply our reporter’s email but failed to do so after numerous reminders.
PREMIUM TIMES’ reporter later visited the head office of GE in Victoria Island but was prevented from speaking with officials of the IOC.
Similarly, the FIRS declined to speak on the case as several emails sent to the agency were not replied.
The Guardian later reported that the tax authority has said it will refund the N360 million and $2 million excess withholding tax (WHT) deducted from Arco through its business dealings with General Electric (GE).
The paper said the details were contained in a letter it obtained, dated July 26, 2018, and directed to PricewaterhouseCoopers (PwC) Limited, (tax advisers to GE) with reference number FIRS/TPAD/GEN/272/V.IX/.
“In respect of the treatment of excess WHT deducted from Arco and remitted to FIRS, Arco has either of the following two options: To formally apply to FIRS for the refund of the excess WHT deducted so long as there is evidence of remittance to the FIRS account; or to use same to offset its future tax liabilities,” the FIRS letter reportedly read.
Oil & Energy
The Tofu Brine Battery That Could End the Lithium Era
Researchers in Hong Kong and China have developed a new form of battery that is more eco-friendly and longer lasting than lithium ion batteries – and it runs on tofu brine. The new water battery is still in research phases, but if the technology proves to be scalable enough to hit commercial markets, it could be a game-changer for the energy and tech sectors.
“Compared with current aqueous battery systems … our system delivers exceptional long-term cycling stability and environmental friendliness under neutral conditions,” the research team, composed of scientists from the City University of Hong Kong and Southern University of Science and Technology in Shenzhen, Guangdong, said in a paper published this month in Nature Communications.
The researchers found that their battery model can be recharged over 120,000 times. “At over a hundred thousand cycles, this could mean a single water-based battery could last at least a decade or so,” states a recent report on the breakthrough from Interesting Engineering. “For applications like grid storage (solar farms, wind balancing), that’s extremely valuable,” the article went on to say.
This kind of lifespan would represent a drastic improvement over the battery technologies that dominate today’s market. Lithium-ion batteries degrade after between 1,000 and 3,000 charge cycles. This could prove revolutionary, as finding an alternative to lithium-ion batteries to power rechargeable devices is a major priority for Big Tech and the global energy sector.
Moreover, these tofu-brine batteries could prove safer and more environmentally friendly than lithium-ion batteries. According to the study authors, the full cells are environmentally benign and nontoxic and can be directly discarded to environments according to various standards.” Water based (also called aqueous) batteries can also potentially be cheap to produce as they rely on ingredients that are less rare in addition to being less hazardous.
Lithium is environmentally harmful to extract, prone to fires, and its supply chains are geopolitically fraught. Currently, China alone controls half of the global lithium market, and is rapidly increasing its stake. In 2024, more than eight in ten battery cells on the planet were made in China. This means that finding a battery model that can compete with lithium-ion batteries in applications like grid-scale energy storage and electric vehicles would have revolutionary implications for global markets.
Researchers around the world have been racing to develop battery models that could diversify the market and make it more competitive and resilient. These models range widely in size, components, and application, with models currently under development for next-gen sodium-ion batteries, quantum batteries, nuclear batteries, and even sand and dirt batteries.
Of course, the irony is that the leading alternatives to lithium-ion batteries are also being developed in Chinese labs. If this new tofu-brine battery proves scalable and applicable outside of a laboratory environment, it could just be another step toward Beijing’s goal of near-total domination of clean energy technology value chains and status as the world’s first and premiere ‘electro-state.’
China’s extreme advantage in global battery making gives it a major point of leverage in global economies as the world continues to electrify at a rapid pace. It is estimated that European demand for lithium in batteries will reach kilo tonnes (thousands of tonnes) of Lithium Carbonate Equivalent by next year, and North American demand will reach 250 kit LCE. it’s all but certain that the vast majority of that demand will be supplied by China.
Other nations are aware of the risk of this dependency, and are taking pains to protect and promote domestic battery manufacturing, but these efforts may be too little, too late. “For globally competitive battery manufacturing industries to emerge outside of Asia over the next ten years, companies will need to do far more than ensure regulatory compliance,” summarizes a McKinsey & Company report released in January. “Challenges will need to be overcome on multiple fronts spanning supply chains, talent management, operations and technology.”
By: Haley Zaremba
Oil & Energy
REA TO Spend N100bn On Hybrid Mini-grids For Govt Agencies In 2026
The Rural Electrification Agency (REA) says it will spend N100 billion in 2026 to deploy hybrid mini-grids for government agencies within and outside Abuja.
The Managing Directors, REA, Abba Aliyu, disclosed this while addressing newsmen on the sidelines of the 2026 budget defence session
The approved funds form part of the National Public Sector Solarisation programme, a component of the agency’s broader N170 billion budget proposal for 2026.
The initiative is designed to improve electricity reliability for public institutions while reducing operational costs and easing pressure on the national grid.
Aliyu explained that the agency’s total proposed budget for 2026 stands at N170 billion, with N100 billion of the amount dedicated specifically to the solarisation initiative targeting government agencies.
He said the hybrid mini-grid systems combine solar power with complementary energy sources to ensure an uninterrupted electricity supply.
“The total budget size for 2026 operations is N170 billion, out of which N100 billion had been approved for National Public Sector Solarisation.
Aliyu cited the National Hospital in Abuja as an example where similar infrastructure had been deployed to ensure stable power and cut operational expenses.He added that beyond the Solarisation
Recall that earlier in February 2026, REA signed a Memorandum of Understanding with the Economic Community of West African States (ECOWAS) to deploy solar power systems to 15 public institutions across Nigeria.
The project will be implemented under the Regional Off-Grid Electricity Access Project (ROGEAP), a World Bank-supported initiative aimed at expanding off-grid electricity access across West Africa and the Sahel.
ECOWAS will provide a $700,000 grant to fund the installation of solar photovoltaic systems in selected rural health centres and schools in the Federal Capital Territory, Niger, and Nasarawa States.
Oil & Energy
PIA: TotalEnergies Transfers OLO Oilfield HCDT Obligation To Aradel ……Says HCDT Enabled Completion of 100 Projects In 2 years
In his remarks, the Community Affairs Manager, Aradel Holdings Plc, Blessyn Okpowo, affirmed the company’s commitment to honouring all PIA obligations and continuing Total Energies’ community engagement approach.“We want to say that in line with the PIA, we will honour commitments and duties required of the settlor and we want to work very smoothly with the way TotalEnergies has worked with them,” he stated.
He recognised the Commission’s role in approving the Community Development Plan (CDP) before project start, underscoring regulatory excellence.The parties noted that between 2023 and 2025, the trust has enabled the completion of more than 100 community projects, spanning water supply, electricity, road infrastructure, education, and healthcare with a further 40 projects currently ongoing.
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