Section 73

(1) Where, for any accounting period of a company, there is a sale of
chargeable chargeable oil between connected persons, or disposal of chargeable oil be-
tax payable
tween connected or unconnected persons, and the amount of the chargeable
in certain
hydrocarbon tax for that period, calculated in accordance with the provisions
circum-
stances of this Part other than this section, is less than the amount prescribed in sub-
section (2), the company shall pay an additional amount of chargeable hydro-
Nigeria Tax Act, 2025 2025 No. 7 A 437
carbon tax for that period equal to the difference between those two amounts.
(2) The amount referred to in subsection (1) is, for any accounting period
of a company, the amount which the chargeable hydrocarbon tax for crude oil
for that period, calculated in accordance with this Part, shall be, if the reference
in section 67 (1) (a) of this Act to the proceeds of sale were a reference to the
amount obtained by multiplying the number of barrels of that crude oil determined
at the measurement point by the fiscal oil price per barrel.
(3) For the purpose of subsection (2), the Commission shall establish the Act No. 6,
fiscal oil price at each measurement point on an export parity basis under 2021
paragraph 8 (1) and (2) of the Seventh Schedule of the Petroleum Industry
Act and the total value of the chargeable oil for a company shall be the sum of
the multiplications of volume and fiscal oil price at all measurement points as
established by the Commission.
(4) The whole of any additional chargeable hydrocarbon tax for crude oil
and associated gas payable by a company under this section for any accounting
period shall be paid concurrently with the final instalment of the chargeable
hydrocarbon tax payable for that period.
(5) Where there is no fiscal oil price established for a crude oil stream,
the Commission shall establish fiscal oil price for such stream and the fiscal oil
price per barrel established shall bear a fair and reasonable relationship –
(a) to the established fiscal oil price of Nigerian crude oil streams of
comparable quality and specific gravity; or
(b) where there are no such Nigerian crude oil streams of comparable
quality and specific gravity, it shall bear a fair and reasonable relationship to
the official selling prices at main international trading centres for crude oil
of comparable quality and gravity,
due regard being had in either case to freight differentials and other relevant
factors.
(6) Notwithstanding any other provision in this Part, where crude oil,
which in relation to a particular company is its chargeable oil, is sold or disposed
by another company, the crude oil shall for the purpose of this section be
deemed to be sold or disposed by that particular company.