Library / Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Page 4 of 29

Open the PDF at page 4

“y 
; 
me 
FEDERAL INLAND REVENUE Healt _— J J 
*& 
15, SOKODE CRESCENT, WUSE ZONE 5, ‘P.M.B 33; GARKI, ABUJA, NIGERIA<~ 
we, 
o> 
INFORMATION CIRCULAR 
NO:2024/02 
| 
» 
PUBLICATION DATE: 
19" APRIL, 2024 
Subject: GUIDELINE ON THE APPLICABILITY OF THE MIDSTREAM CAPITAL AND GAS 
UTILIZATION INVESTMENT ALLOWANCE 
Background 
a 
This guideline is issugd forthe information- and guidance of relevant taxpayers, tax practitioners 
and the general pubjic on the implemeritation of the midstream capital and gas utilization 
investment allowance. 
? 
# 
a, 
m4 
# bad 
1.0 Introduction 
~~ 
In a bid to unloék’ new investments in the thidstream sector of the oil and gas industry, the 
President of the Federal Republic of Nigeria, signtéd an Executive Order No 40, Oil and Gas 
Companies (Tax Incentives, Exemption, Remission, tc.) Order, 2024. 
2.0 Scope of the Guideline 
The scope of this guideline covers gas: utilization investment allowance to be granted on 
qualifying capital expenditure incurred on plant and equipment by midstream gas companies 
in respect of any new and ongoing project in the midstream oil and gas industry engaged in 
processing 
and transportation 
of natural 
gas 
as 
regulated by the 
Nigerian 
Midstream 
Downstream Petroleum Regulatory Authority (NMDPRA). 
3.0 Legal Framework 
This guideline is issued pursuant to Part 
I! of the Oil and Gas Companies (Tax Incentives, 
Exemptions, Remission, 
Etc) Order 2024 
[S.1 
No.1 
Of 2024] dated 28" February 2024; 
Sections 23 (2) and 89 of Companies Income Tax Act (CITA) as amended. 
4.0 Conditions for Eligibility for Gas Utilisation Investment Allowance (GUIA) 
To be eligible for the GUIA, the company must have incurred qualifying capital expenditure on 
plants and equipment in one or more of the following midstream gas operations: 
we