The Benue State Government has confirmed the closure of Oracle Business Limited and its subsidiaries, a company owned by former governor Samuel Ortom, over an alleged unpaid tax debt of N130 million. The debt, which has accumulated over the past five years, led to the company’s operations being halted as part of a state-wide crackdown on businesses that have failed to meet their tax obligations.
The acting Executive Chairman of the Benue State Board of Internal Revenue, Sunday Odagba, made this disclosure while addressing claims that the company was sealed due to political differences between Ortom and the current administration. He firmly denied any political motivation behind the action, stating that it was strictly an effort by the state to recover tax income owed by various corporate entities.
“This decision was made purely in the interest of the state and its financial health,” Odagba stated. “It is not a political issue. This administration is focused on recovering funds from all businesses that have outstanding tax liabilities, regardless of their affiliations or ownership.”
The former governor’s company, Oracle Business Limited, has refuted these claims, with its management asserting that they had been in discussions with the state’s revenue authority and that the tax liability had been reviewed down to N38 million, which the company claims to have paid.
However, Odagba disputed this, revealing that the company had not made any tax payments for five years, and the accumulated debt still stood at over N130 million. He added that the company had been invited multiple times for a reconciliation of its tax obligations but had failed to respond or attend meetings.
“We’ve made several attempts to engage with the management of Oracle Business Limited for a proper reconciliation of their tax records, but unfortunately, they have not responded positively,” Odagba explained. “This has left us with no choice but to take this enforcement action.”
In addition to Oracle Business Limited, the Benue State Board of Internal Revenue has intensified its efforts to collect overdue taxes from other companies across the state. The board has warned businesses with similar outstanding tax liabilities to settle their debts promptly to avoid a similar fate.
Odagba also pointed out that the state government is determined to improve its internally generated revenue (IGR) to support critical infrastructure development and public services. He stated that no company would be exempt from paying taxes and that this enforcement drive was necessary for the growth and sustainability of the state’s economy.
He emphasized, “We are not targeting individuals or political figures. Every business that operates within Benue State must fulfill its tax obligations. The funds recovered from taxes are vital for the development of the state, including funding for schools, hospitals, roads, and other public infrastructure.”
The development has sparked reactions from different quarters, with some seeing it as a bold move by the state government to shore up its finances, while others speculate about potential underlying political tensions. Nevertheless, the government insists that the action is solely aimed at ensuring all corporate entities comply with tax laws and contribute to the state’s economic growth.
As the situation unfolds, Oracle Business Limited is expected to either clear its outstanding tax liabilities or contest the government’s claims in court. Meanwhile, other companies with overdue taxes in Benue State are on high alert, following the government’s strict stance on recovering unpaid taxes.
This incident highlights the broader challenge of tax compliance in Nigeria, where many businesses, including those owned by influential figures, often evade their tax responsibilities. The Benue State government’s firm position on this matter serves as a warning to other companies to ensure they meet their financial obligations to the state.
