Section 100 Nigeria Tax Act 2025

Section 100 of the Nigeria Tax Act 2025 is about Additional chargeable 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 between connected persons, or disposal of chargeable oil between connected or unconnected persons, and the amount of the chargeable tax for that period, calculated in accordance with the provisions of this Part other than this section, is less than the amount prescribed in subsection (2), the company shall 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 that period, calculated in accordance with the provisions of this Part, shall be, if the reference in section 91 (1) (a) and (b) of this Act to the proceeds of sale were a reference to the amount obtained by multiplying the number of barrels of that crude oil determined at the measurement point by the fiscal oil price per barrel.

(3) For the purpose of this section, the total value of the chargeable oil for a company shall be the sum of the multiplications of volume and fiscal oil price as established by the Commission at the measurement point.

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

(5) Where there is no fiscal oil price established for a crude oil stream, the Commission shall establish fiscal price for such stream and the fiscal oil price per barrel established shall bear a fair and reasonable relationship –

(a) to the established fiscal oil price of Nigerian crude oil streams of comparable quality and specific gravity; or

(b) where there are no such Nigerian crude oil streams 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 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 a particular company’s chargeable oil is exported from Nigeria or sold locally by another company, that chargeable oil for the purpose of this Part shall be deemed to be exported from Nigeria or sold by that particular company.

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