Section 18 Nigeria Tax Administration Act 2025

Section 18 of the Nigeria Tax Administration Act 2025 is about Monthly returns of petroleum royalty. It provides as follows:

(1) Every licensee or lessee engaged in petroleum operations, on the coming into effect of this law, or commencement of production, whichever is earlier, shall file a self-assessment return of royalty with the Service in the prescribed form.

(2) The returns of royalty for each month shall be filed on or before the 14th day of the following month, whether or not production has taken place, and shall be accompanied by –
(a) the respective total volumes of crude oil, condensates, natural gas and natural gas liquids produced on a field-by-field basis, and where different types of petroleum are produced, the total volumes of each type ;

(b) the fiscal prices for crude oil, condensates, natural gas and separately produced natural gas liquids ;
(c) computation of royalty based on production ;
(d) computation of royalty by price ;
(e) duly completed royalty self-assessment form ;
(f) evidence of payment of royalty due ; and
(g) such other information as may be required by the Service.

(3) The returns referred to in subsection (2) shall be signed by an authorised officer of the company, stating that the returns, schedules, statements and other information given is correct and complete to the best of the person’s knowledge.

(4) Where marketable natural gas is produced and utilised in-country, the lessee or licensee shall, in addition to subsection (2), provide the following
information —
(a) the volume of domestic gas delivered ;
(b) the volume of gas destined for export project ;

(c) destination certificates based on the related purchase and sales agreements or other relevant information ; and
(d) destination certificates where the lessee sells natural gas to a supplier or wholesale customer.

(5) The Service shall review the royalty returns filed and may reassess where necessary the royalty payable and any additional royalty shall be paid within 30 days of service of a notice of assessment of such additional royalty.

(6) The provisions of this Act as to notice of assessment, additional assessment, appeals and other proceedings, shall apply to an assessment or additional assessment made under this section.