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Nigeria Tax Act 2025 · Chapter 3 · Part III

Section 108Allocation of cost oil

(1)
Cost oil shall be allocated to the contractor in such quantum as shall generate an amount sufficient for the recovery of operating costs in oil prospecting licences as defined in the production sharing contract and any oil mining leases derived therefrom.
(2)
All operating costs shall be recovered in US Dollars through cost oil allocations in accordance with the terms of the production sharing contract.
Cite as: Nigeria Tax Act 2025, section 108

Source: Nigeria Tax Act, 2025 (Act No. 7 of 2025), Official Gazette No. 117, Lagos, 26 June 2025. General information, not legal advice.