Section 114 Nigeria Tax Act 2025

Section 114 of the Nigeria Tax Act 2025 is about Use of realisable price in determining royalty and petroleum profits tax in respect of crude oil. It provides as follows:

(1) The realisable price as defined in the production sharing contract established by the holder in accordance with the provisions of the production sharing contract, shall be used to determine the amount payable on royalty and petroleum profits tax in respect of crude oil produced and lifted under the
production sharing contract.

(2) The parameters for new crude oil streams produced from the contract area shall also be determined in accordance with the provisions of the production sharing contract.

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