Section 137 Nigeria Tax Act 2025

Section 137 of the Nigeria Tax Act 2025 is about Duty on loan capital. It provides as follows:

(1) The loan capital of a company shall be charged with ad valorem duty, as specified in the Ninth Schedule to this Act.

(2) “loan capital” means any debenture stock, other stock or funded debt by whatever name known or any debt raised by any corporation, company or body of persons formed or established in Nigeria but does not include –

(a) an overdraft;

(b) loan obtained for a period not exceeding twelve months; and

(c) loan obtained for onward disbursement to any other person in an on
lending arrangement:

Provided that for the purpose of paragraph (c) of subsection (2), the beneficiary of the disbursement shall be responsible to pay the duty as prescribed in the Ninth Schedule to this Act.

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