Section 95 Nigeria Tax Act 2025

Section 95 of the Nigeria Tax Act 2025 is about Deductions not allowed. It provides as follows:

(1) Subject to the provisions of this Part, for the purposes of ascertaining the adjusted profit of any company for any accounting period from its petroleum operations, no deduction shall be allowed in respect of –

(a) any capital withdrawn or any sum employed or intended to be employed as capital;
(b) any capital employed in improvements as distinct from repairs;

(c) any sum recoverable under an insurance or contract of indemnity;
(d) rent of or cost of repairs to any premises or part of premises not incurred for the purposes of those operations;
(e) any amount incurred in respect of any income tax, profits tax or other similar tax whether charged within Nigeria or elsewere;

(f) the depreciation of any premises, buildings, structures, works of a permanent nature, plant, equipment, machinery, furniture or fixtures;

(g) any payment to any pensions, provident, savings widows’ and orphans’ or other society scheme or fund, except such payments as are allowed under section 91 (1) (j) of this Act;
(h) customs duty on goods, including articles or any other thing, imported by the company –

(i) or resale or for personal consumption of employees of the company, or
(ii) where goods of the same quality to those imported are produced in Nigeria and are available for sale to the public at a price lower or equivalent to the cost of the imported goods at the time the imported goods were ordered by the company;

(i) any expenditure for the purchase of information relating to the existence and extent of petroleum deposits;

(j) any qualifying expenditure for the purposes of Part III of the First Schedule to this Act, and any expense or deduction in respect of a liability incurred which is deductible under any other provision of this Act;

(k) any tax or penalty borne on behalf of another person; and
(l) any expense on which Value Added Tax is due under this Act but not charged, or in the case of imported items, any expense on which the applicable import duty or levy was not paid.

(2) Notwithstanding the provisions of section 92(1) of this Act, in computing the adjusted profit of any company of any accounting period, deduction shall not be allowed in respect of any sum incurred to a related party where the cost is not in accordance with the Transfer Pricing Regulations.

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