Section 78 Nigeria Tax Act 2025

Section 78 of the Nigeria Tax Act 2025 is about Income tax on petroleum operations. It provides as follows:

(1) Sections 78 to 88 of this Act and the provisions of chapter two of this Act shall apply to any company, concessionaire, licensee, lessee, contractor or subcontractor involved in the upstream, midstream or downstream petroleum operations under the Petroleum Industry Act –

(2) For the purpose of determining the value of chargeable crude oil or chargeable gas, in relation to any accounting period, the crude oil and gas
revenue of a company for that period shall be the value of any chargeable oil
or chargeable gas adjusted to the measurement points, based on the –
(a) proceeds of all chargeable oil or gas sold by the company; and
(b) value of all chargeable oil or gas disposed by the company.

(3) In determining the income tax under Chapter Two of this Act –
(a) hydrocarbon tax is not deductible; and

(b) income chargeable to tax includes –
(i) all income of that period incidental to and arising from any one or more of its petroleum operations, and
(ii) gains arising from the disposal of assets accruing to the company in any accounting period, ascertained in accordance with the relevant provisions of Part VIII of Chapter two of this Act.

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