Sign up and join thousands of professionals who receive the Nurmara Daily Brief e-mail – an indispensable, no-nonsense take on Africa-related business, policy and development.

Nigeria is looking to recover up to $62 billion from international oil companies for failing to comply with a 1993 law entitling the state to a greater share of revenues if the price per barrel exceeds $20. The claim is the latest in a series of demands for big companies operating in the country to cough up money.

In February the government ordered oil and gas companies to pay $20 billion in back taxes. Just last week it fined 12 banks $1.3 billion for failing to increase their lending in line with regulatory targets.

Last year saw a high profile standoff with South African mobile operator MTN’s local unit – the latest in a series of clashes – over a demand to refund $8.1 billion allegedly taken out of the country illegally.

Ostensibly the government is simply enforcing the law, but in a country renowned for flouting regulations this sudden and selective enthusiasm for the rule of law is suspect.

It’s hard to disconnect this from fears about a fiscal crisis in Africa’s biggest economy, and government efforts to increase revenues.

This seems to include effectively shaking down big companies.

It’s doubtful that authorities expect to recover anything near $62 billion from oil firms. More likely is an MTN-style settlement, which saw the $8.1 billion demand end with a meagre $53 million payment.

This report reflects the views of the author alone, not those of How we made it in Africa.

---

Today’s picks

From the continent

Angola’s government has appointed a new board for state-owned telecommunications firm Angola Telecom to lead the planned privatisation of the company. This is part of a major liberalisation drive under president João Lourenço, with plans to privatise almost 200 state companies by 2022. More: MacauHub

Nigeria and Cameroon, the world’s fourth and fifth biggest cocoa producers, are reportedly planning to agree a premium for exports with buyers. This comes amid greater cooperation efforts between Côte d’Ivoire and Ghana, the world’s top two producers, aimed at reducing their vulnerability to price volatility. More: Reuters

The global perspective

Cairo-based African Export-Import Bank is considering an initial public offering of global depository receipts on the London Stock Exchange. The move is aimed at boosting trade finance across Africa. More: Moneyweb

The US government has imposed sanctions on South Africa’s Gupta business family and an associate over their alleged role in large-scale corruption under former president Jacob Zuma. According to the US Treasury they stole hundreds of millions of dollars through illegal deals with the South African government. More: BBC

Sign up and join thousands of professionals who receive the Nurmara Daily Brief e-mail – an indispensable, no-nonsense take on Africa-related business, policy and development.