Section 101

(1) A person, other than a company, who engages in petroleum
operations either on his own account or jointly with any other person or in
partnership with any other person with a view to sharing the profits arising
from those operations commits an offence.
(2) Where the person referred to in subsection (1) has benefitted from
any profits on upstream petroleum operations, the person shall be subject to
tax under this Part on the profits and shall pay a penalty provided under Nigeria
Tax Administration Act, 2025.
(3) Where two or more companies are engaged in petroleum operations
either in partnership, in a joint venture or in concert under any scheme or
arrangement, the Service may make regulations for the ascertainment of the
tax to be charged and assessed on each company so engaged.
(4) Such regulations may –
(a) modify the provisions of this Part in such manner as the Service may
deem fit;
(b) provide for the apportionment of any profits, outgoings, expenses,
liabilities, deductions, qualifying expenditure and the tax chargeable on each
company;
(c) provide for the computation of any tax as if the partnership, joint
venture, scheme or arrangement were carried on by one company and
apportion that tax between the companies concerned;
Nigeria Tax Act, 2025 2025 No. 7 A 453
(d) accept other basis of ascertaining the tax chargeable on each of the
companies, which may be put forward by those companies ; or
(e) contain provisions which have regard to any circumstance whereby
such operations are partly carried on for the companies by an operating
company whose expenses are reimbursed by those companies.
(5) Regulations made under this section may be of general application
for the purposes of this section and this Part or of particular application to a
specified partnership, joint venture, scheme or arrangement.
(6) The regulations made under this section shall not impose a greater
burden of tax on any company engaged in any partnership, joint venture, scheme
or arrangement than would have been imposed on that company under this
Part if all things enjoyed, done or suffered by such company had been enjoyed,
done or suffered by the company in the proportion in which it enjoys, does or
suffers those things under that partnership, joint venture, scheme or
arrangement.
PART III – DEEP OFFSHORE AND INLAND BASIN
PRODUCTION SHARING CONTRACTS