Section 84

(1) Where, for any accounting period of a company, there is a sale of Additional
chargeable oil or chargeable gas between connected persons, or disposal of income tax
payable in
chargeable oil or chargeable gas between connected or unconnected persons,
certain
circum-
stances
A 442 2025 No. 7 Nigeria Tax Act, 2025
and the amount of the income tax chargeable for that period, calculated in
accordance with the provisions of sections 78 to 83, and Chapter Two of this
Act, is less than the amount prescribed in subsection (2), the company shall be
liable to pay an additional amount of chargeable 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 tax for crude oil or gas for
that period, calculated in accordance with this section and chapter two of this
Act shall be, if the reference in section 78 (2)(a) and (b) of this Act, to the
proceeds of sale or disposal were a reference to the amount obtained by
multiplying the number of barrels of that crude oil or gas determined at the
measurement point by the fiscal oil price per barrel or fiscal gas price per
MMBtu.
(3) For the purposes of subsection (2), the relevant sum per barrel of
crude oil, condensate or gas per MMBtu by a company is the fiscal oil price or
fiscal gas price applicable to that crude oil or gas as may be established by the
Commission.
(4) The whole of any additional chargeable tax for crude oil or chargeable
gas payable by a company under this section for any accounting period shall
be paid concurrently with the final instalment of the chargeable tax payable for
that period.
(5) Where there is no fiscal oil price or fiscal gas price established for a
crude oil stream or gas, the Commission shall establish fiscal oil price or fiscal
gas price for such stream and the fiscal oil or gas price established shall bear
a fair and reasonable relationship -
(a) to the established fiscal oil or gas price of Nigerian crude oil streams
or gas of comparable quality and specific gravity; or
(b) where there are no such Nigerian crude oil streams or gas 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 or gas 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 or
gas, which in relation to a particular company is its chargeable oil or gas, is sold
or disposed by another company, the crude oil or gas shall for the purpose of
this section be deemed to be sold or disposed by that particular company.