Section 86 Nigeria Tax Act 2025

Section 86 of the Nigeria Tax Act 2025 is about Provision relating to decommissioning and abandonment of funds. It provides as follows:

Notwithstanding section 233(1) of the Petroleum Industry Act, a provision made for decommissioning and abandonment fund shall not be deductible for tax purposes, except –

(a) the licensee or lessee deposit a minimum of 30% of the decommissioning and abandonment fund with a Nigerian Bank, in the form of an escrow account accessible by the Commission or Authority; and

(b) the Nigerian bank is accredited in accordance with the criteria for accreditation for participation in the management of the fund, determined by the Central Bank of Nigeria in collaboration with the Service.

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