Summary

NIGERIA TAX ADMINISTRATION ACT, NO. 5, 2025

DEEP OFFSHORE OIL AND GAS PROJECTS INCENTIVES (TAX REMISSION) ORDER, 2026

[6th Day of August, 2026]

In exercise of the powers conferred on me by section 3(1)(e) of the Petroleum Industry Act, 2021, section 77(1) of the Nigeria Tax Administration Act, No. 5, 2025, and upon the recommendations of the Minister responsible for Finance, I, Bola Ahmed Tinubu, President Federal Republic of Nigeria, make the following Order --

1.--(1) A Standard Production Tax Credit (Standard PTC) incentive specified under paragraphs 2 and 3 of this Order shall apply to project developments in the following categories of deep offshore leases --

(a) existing leases, where the lessee makes a Final Investment Decision (FID) for the project development, in the period from the effective date to 31st December, 2029, provided that where the lessee is --

(i) unable to commit to the FID as prescribed in sub-paragraph (1)(a) of this paragraph due to the occurrence or subsistence of a force majeure, the lessee may apply to the Commission for an extension, stating the nature of the force majeure event, the period affected, and the revised timeline for the FID, and the Commission shall notify the Service of any extension granted within 14 days of granting the extension, and

(ii) desirous of taking the benefit of any incentive under this Order, the lessee shall notify the Commission of such FID within 30 days of the FID being made; and

(b) future leases awarded after the effective date, and those derived from existing licences or future licences awarded after the effective date.

(2) The Standard PTC incentive shall be determined separately for each approved project development.

(3) Where the lessee is unable to achieve the criteria in sub-paragraph (1)(a) of this paragraph, and no extension has been granted under sub- paragraph (1)(a)(i) of this paragraph, the Standard PTC shall apply at 50% of the applicable rate, provided that the project otherwise satisfies all eligibility conditions under this Order.

2.--(1) Subject to the provisions of this Order, there shall be a production tax credit in respect of crude oil produced from a project development, calculated from the commencement of production from that project development at the rate of --

...