Action Aid sure are idiots

So, tax break in Nigeria:

Nigeria has lost billions of dollars because of a 10-year tax break given to Shell, Total and Eni, three of the world’s biggest oil and gas companies.

That staggering $3.3bn (£2.3bn) revenue loss, in a country where millions of people live in extreme poverty, is best understood through the social cost. The tax giveaway, which started in 1999, forfeited an opportunity to grant 70 million young Nigerians access to quality education, rebuild the university system and tackle entrenched problems in the health system.

So, why’d they get the tax break?

Until recently, companies were unwilling to exploit gas because there is no domestic market for gas in Nigeria, exports of gas were difficult and profit margins were low.

The tax break brought in the $10 billion needed to get the LNG going.

So it’s not in fact, Nigeria has lost money from tax break, it’s Nigeria has some development and will get some future revenue from having provided the tax break. Without the break it would get nothing.

Hmm.

8 thoughts on “Action Aid sure are idiots”

  1. The tax giveaway, which started in 1999, forfeited an opportunity to grant 70 million young Nigerians access to quality education

    Or, more likely, 70 politicians access to the London real estate market.

  2. Oh, and $3.3bn over 10 years is the square root of fuck all in the global scheme of things. Individuals have managed to pilfer sums of similar size over a weekend in Nigeria.

  3. “Or, more likely, 70 politicians access to the London real estate market”

    Probably, but who will be processing the cash? Surely not the international finance industry? Hang on, I thought the finance industry are blameless!

    Damn those Africans with suitcases full of used twenties.

  4. Arnald said:
    “Probably, but who will be processing the cash? Surely not the international finance industry?”

    I thought it was mostly the French domestic banks that looked after African politicians.

  5. Probably, but who will be processing the cash? Surely not the international finance industry?

    if you’re advocating the summary execution of managers who work in British high-street banks who expect ordinary folk to jump through hoops while turning a blind eye to foreigners turning up with sacks of loot, I’m with you.

  6. They have a lovely little loophole in Canada that while real estate agents are required to report any suspicious transactions (big bag of cash for million $ house) to the money laundering people, but any transaction conducted by a lawyer is considered client privelege so if you give the lawyer a bag of cash which he puts into a client account and he conducts the transaction then there is nothing to report to the money laundering people.

  7. BniC – I thought lawyers were *supposed* to ascertain the source of funds under Canadian anti-laundering legislation. Whether they do so (or are far too credulous on hearing some transparent story) is another question. I admit that I don’t speak from good knowledge on that issue.

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