Section 120

(1) Where, in any year of assessment, any part of the income or
relief of profit of a resident of Nigeria, derived from outside Nigeria, has been charged
double to tax in the source country, and that income or profit is also chargeable to tax
taxation
in Nigeria, the tax paid outside Nigeria may be allowed as a credit against the
tax payable in Nigeria.
(2) The credit to be allowed in subsection (1) shall be the lower of the –
(a) Nigerian tax, other than taxes under Chapter Three of this Act,
attributable to the foreign income or profit; and
(b) amount of tax paid in the source country.
(3) The Nigerian tax under subsection (2) (a) attributable to the foreign
income or profit shall be the proportion of the foreign income to total income,
multiplied by the Nigerian tax.