Section 84 Nigeria Tax Act 2025

Section 84 of the Nigeria Tax Act 2025 is about Additional income tax payable in certain circumstances. It provides as follows:

(1) Where, for any accounting period of a company, there is a sale of
chargeable oil or chargeable gas between connected persons, or disposal of
chargeable oil or chargeable gas between connected or unconnected persons, and the amount of the income tax chargeable for that period, calculated in
accordance with the provisions of sections 78 to 83, and Chapter Two of this Act, is less than the amount prescribed in subsection (2), the company shall be liable to pay an additional amount of chargeable tax for that period equal to the
difference between those two amounts.

(2) The amount referred to in subsection (1) is, for any accounting period of a company, the amount which the chargeable tax for crude oil or gas for that period, calculated in accordance with this section and chapter two of this
Act shall be, if the reference in section 78 (2)(a) and (b) of this Act, to the proceeds of sale or disposal were a reference to the amount obtained by
multiplying the number of barrels of that crude oil or gas determined at the
measurement point by the fiscal oil price per barrel or fiscal gas price per MMBtu.

(3) For the purposes of subsection (2), the relevant sum per barrel of crude oil, condensate or gas per MMBtu by a company is the fiscal oil price or fiscal gas price applicable to that crude oil or gas as may be established by the Commission.

(4) The whole of any additional chargeable tax for crude oil or chargeable gas payable by a company under this section for any accounting period shall be paid concurrently with the final instalment of the chargeable tax payable for that period.

(5) Where there is no fiscal oil price or fiscal gas price established for a crude oil stream or gas, the Commission shall establish fiscal oil price or fiscal gas price for such stream and the fiscal oil or gas price established shall bear a fair and reasonable relationship –
(a) to the established fiscal oil or gas price of Nigerian crude oil streams
or gas of comparable quality and specific gravity; or

(b) where there are no such Nigerian crude oil streams or gas of comparable quality and specific gravity, it shall bear a fair and reasonable relationship to the official selling prices at main international trading centres for crude oil or gas of comparable quality and gravity, due regard being had in either case to freight differentials and other relevant factors.

(6) Notwithstanding any other provision in this Part, where crude oil or gas, which in relation to a particular company is its chargeable oil or gas, is sold or disposed by another company, the crude oil or gas shall for the purpose of this section be deemed to be sold or disposed by that particular company.

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