Section 173

(1) A company issued an economic development incentive certificate
day and shall, not later than one month after its production day, apply to the relevant
qualifying authority to certify its production day.
capital
expenditure (2) The relevant authority shall within one month of certifying the
production day, notify the NIPC and the Service of the production day of the
company.
(3) Not later than one month after the production day of the company
has been determined and certified under this section, or within such extended
time as the Service may allow, the company shall make an application in writing
to the Service to certify the amount of the qualifying capital expenditure incurred
by the company prior to production day and the company shall supply full
particulars of the capital expenditure so incurred.
(4) In determining the amount of qualifying capital expenditure incurred
by the company prior to its production day, any sum derived directly or indirectly
by that company from disposal, made before the production day, of any asset
on which qualifying capital expenditure has been incurred, shall be deducted
Nigeria Tax Act, 2025 2025 No. 7 A 485
from the amount of the qualifying capital expenditure.
(5) Where the disposal of asset referred to in subsection (4) is by way of
a bargain not made at arm's length or to a connected person, the Service shall
consider the asset disposed of at its market value in a comparable transaction
conducted at arm's length.
(6) The Service shall issue a certificate to the company certifying the
amount of qualifying capital expenditure incurred by the company prior to
production day.
(7) The provisions of Chapter Two of Nigeria Tax Administration Act,
which relate to objections and appeals shall apply to any certificate issued
by the Service under this section, as if such certificate were a notice of
assessment given under the provisions of the Nigeria Tax Administration Act,
2025.
(8) Where the amount of the qualifying capital expenditure incurred by
the company prior to production day has been determined and certified by the
Service, the Service shall notify the NIPC of the amount.
(9) Where a certificate issued by the Service under subsection (6) certi- Tenth
fies that the company has on or before production day incurred qualifying Schedule
capital expenditure lower than the amount specified in the Tenth Schedule to
this Act, the Service shall discountenance such economic development incen-
tive certificate and notify the NIPC accordingly.
(10) For the purposes of this section, "production day" means in relation
to a company –
(a) providing services, the date in which the company is ready to provide
such priority service on a commercial scale; and
(b) engaged in manufacturing, processing, mining, agricultural or any
other priority industry, the date in which the company begins to produce the
priority product in commercial quantities.