Section 87 Nigeria Tax Act 2025

Section 87 of the Nigeria Tax Act 2025 is about General application of this Part and other matters. It provides as follows:

(1) This Part and the provisions of the Petroleum Industry Act shall not apply to holders of an oil prospecting licence or oil mining lease who do not enter into a conversion contract until the termination or expiration of the respective oil prospecting licence or oil mining lease.

(2) Notwithstanding subsection (1), the provisions of Chapter Two of this Act and paragraph 6 of the First Schedule to the Petroleum Industry Act shall apply to licences and leases awarded to indigenous Nigerian companies on a sole risk basis under the Petroleum Act, on which the Government has successfully exercised its back-in rights prior to the effective date of the Petroleum Industry Act, but any renewal of an oil mining lease shall be based on the provisions of this Part and the Petroleum Industry Act.

(3) The fiscal provisions of this Part are the base terms that are applicable, and the Commission may under section 74(2) of Petroleum Industry Act conduct a licensing round whereby the bid parameter is a higher royalty, profit oil share or other fiscal features in order to ensure that the Government receives the full market value for each block.

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