Section 109 Nigeria Tax Act 2025

Section 109 of the Nigeria Tax Act 2025 is about Allocation of cost oil. It provides as follows:

(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.

[/membership]