Section 95

(1) Subject to the provisions of this Part, for the purposes of
Deductions
not allowed ascertaining the adjusted profit of any company for any accounting period
from its petroleum operations, no deduction shall be allowed in respect of –
Nigeria Tax Act, 2025 2025 No. 7 A 449
(a) any capital withdrawn or any sum employed or intended to be employed
as capital;
(b) any capital employed in improvements as distinct from repairs;
(c) any sum recoverable under an insurance or contract of indemnity;
(d) rent of or cost of repairs to any premises or part of premises not
incurred for the purposes of those operations;
(e) any amount incurred in respect of any income tax, profits tax or other
similar tax whether charged within Nigeria or elsewere;
(f) the depreciation of any premises, buildings, structures, work
s of a permanent nature, plant, equipment, machinery, furniture or fixtures;
(g) any payment to any pensions, provident, savings widows' and orphans'
or other society scheme or fund, except such payments as are allowed
under section 91 (1) (j) of this Act;
(h) customs duty on goods, including articles or any other thing, imported
by the company –
(i) or resale or for personal consumption of employees of the com-
pany, or
(ii) where goods of the same quality to those imported are produced in
Nigeria and are available for sale to the public at a price lower or equivalent
to the cost of the imported goods at the time the imported goods were
ordered by the company;
(i) any expenditure for the purchase of information relating to the existence
and extent of petroleum deposits;
(j) any qualifying expenditure for the purposes of Part III of the First First
Schedule
Schedule to this Act, and any expense or deduction in respect of a liability
incurred which is deductible under any other provision of this Act;
(k) any tax or penalty borne on behalf of another person; and
(l) any expense on which Value Added Tax is due under this Act but not
charged, or in the case of imported items, any expense on which the appli-
cable import duty or levy was not paid.
(2) Notwithstanding the provisions of section 92(1) of this Act, in computing
the adjusted profit of any company of any accounting period, deduction shall
not be allowed in respect of any sum incurred to a related party where the cost
is not in accordance with the Transfer Pricing Regulations.