Italian Oil Giant Saipem settles major Nigerian $49m tax dispute

A years-long tax dispute between Nigeria's Federal Inland Revenue Service (FIRS) and Italy's oil and gas engineering company, Saipem Contracting Nigeria Limited, has officially come to an end after the Federal High Court in Lagos adopted a settlement agreement reached by both parties.

The court's decision closes every outstanding civil and criminal matter linked to the case after negotiations between the parties resulted in an agreement.

Speaking after the proceedings, counsel to the Federal Inland Revenue Service, Senior Advocate of Nigeria Godson Ugochukwu, said the settlement had been formally accepted by the court.

"The terms of settlement were filed this morning after protracted negotiations <...> They have been adopted as a judgement of the Honourable Court, and it resolves all the issues, both civil and criminal," he said.

Ugochukwu explained that the court's ruling makes the agreement part of the public record and available to anyone who wishes to obtain it.

"The court really has nothing to write beyond what is involved in those terms," he added. "They are public documents now. Anybody can apply to the court to get those terms."

The dispute centred on allegations that Saipem Contracting Nigeria Limited failed to deduct and remit statutory taxes between 2014 and 2019. Nigerian authorities said the alleged failure cost the government more than 49 million USD (43 million EUR).

As part of the settlement, the company reportedly agreed to pay a financial package, including an additional 938,080 USD (823,418 EUR), to resolve its historical tax obligations.

The case formed part of Nigeria's broader push to improve tax compliance and accountability across the oil and gas sector.