Section 119 Nigeria Tax Act 2025

Section 119 of the Nigeria Tax Act 2025 is about Interpretation. It provides as follows:

In this Part -–
“accounting date” means the date on which a company usually prepares its accounting statement;

“accounting period” in relation to a company engaged in upstream
petroleum operations, means-
(a) a period of one year commencing from 1 January and ending on 31 December of the same year ,

(b) any shorter period commencing on the day the company first makes a sale or bulk disposal of chargeable oil, domestic, export or both, and ending on 31 December of the same year , or

(c) any period of less than a year being a period commencing from 1 January of any year and ending on the date in the same year when the company ceases to engage in petroleum operations, and any dispute with respect to the date of the first sale of chargeable oil above or the date on which the company ceases to engage in petroleum operations shall be determined by the Minister responsible for Petroleum Resources;
“adjusted profits” means adjusted profit as stated in sections 67 and 91
of this Act;
“aggregate gas price” means the gas price determined under section 167(4) of Petroleum Industry Act;

“appraisal well” means a well that, in the opinion of the Commission, is aimed at determining the size, distribution, characteristics and commerciality of a petroleum discovery;
“assessable profit” means assessable profit as stated in sections 67 and 91 of this Act;
“assessable tax” for the purposes of petroleum profits tax means assessable tax ascertained under section 99 of this Act;

“associated gas” means -–
(a) natural gas, commonly known as gas-cap gas, which overlies and is
in contact with crude oil in a reservoir; and
(b) solution gas dissolved in crude oil in a reservoir and emerging from
the fluid as pressure drops;

“Authority” means the Nigerian Midstream and Downstream Petroleum
Regulatory Authority” established under the Petroleum Industry Act;
“barrel” means a barrel of 42 United States gallons;
“chargeable oil” means crude oil, condensate or natural gas liquids produced upstream of the measurement point as provided under section 67 of
this Act;

“chargeable profit” means chargeable profit as stated in sections 67
and 91 of this Act;
“chargeable volume” in relation to a company engaged in upstream
petroleum operations means the chargeable volume as set out in paragraph
2 of the Seventh Schedule to the Petroleum Industry Act;

“Commission” means the Nigerian Upstream Petroleum Regulatory
Commission established under the Petroleum Industry Act;
“company” means a company or corporation, including Limited Liability
Partnership, established by or under any law in effect in Nigeria or elsewhere;

“condensate” means a portion of natural gas of such composition that
are in the gaseous phase at temperature and pressure of the reservoirs, but
that, when produced, are in the liquid phase at surface pressure and
temperature;

“contractor” means any petroleum exploration and production company
which has entered into a production sharing contract agreement or arrangement with the holder of an oil prospecting licence or an oil mining lease within the Deep Offshore and Inland Basin;

“crude oil” means, for the purposes of –
(a) Part I of Chapter Three of this Act, petroleum, which is in liquid
conditions upon production from a reservoir either in its natural state or after the extraction of water, sand or other foreign substance from it, but before any such oil has been refined or otherwise treated, other than oil extracted by destructive distillation from coal, bituminous shales or other stratified deposits ; and

(b) Part II of Chapter Three of this Act, any oil, other than oil extracted by destructive distillation from coal, bituminous shales or other stratified deposits, won in Nigeria either in its natural state or after the extraction of water, sand or other foreign substance from it but before any such oil has been refined or treated;

“decommissioning and abandonment” means the approved process of cessation of operations of crude oil and natural gas wells, installations, plants and structures, including shutting down an installation’s operations and production, total or partial removal of installations and structures where applicable, chemicals and all such other materials handling, removal and disposal of debris and removed items, environmental restoration of the area
after removal of installations, plants and structures, and ‘decommission’ has
a corresponding meaning;