Section 105

Where a holder and a contractor have incurred any qualifying capital Determina-
expenditure wholly and exclusively for the purposes of petroleum operations tion of
investment
carried out under the terms of a production sharing contract in the deep offshore
tax allow-
or inland basin, the parties shall be entitled to investment tax allowance at a
ance
A 454 2025 No. 7 Nigeria Tax Act, 2025
rate of 50% of the qualifying expenditure in accordance with the provisions of
existing applicable legislation for the accounting period in which that asset was
first used for the purposes of such operations.