Library / Federal Republic of Nigeria Official Gazette No. 40 Lagos - 1st March, 2024
Federal Republic of Nigeria Official Gazette No. 40 Lagos - 1st March, 2024

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OIL AND GAS COMPANIES (TAX INCENTIVES, EXEMPTION,
REMISSION, ETC.) ORDER, 2024
[28th Day of February, 2024]
In exercise of the powers conferred on me by section 5 of the Constitution of the
Federal Republic of Nigeria, 1999 (as amended), sections 23 (2) and 89 of the
Companies Income Tax Act, Cap C21, Laws of the Federation of Nigeria, 2004 (as
amended), section 48 of the Nigerian Oil and Gas Industry Content Development
Act, 2010 and all other powers enabling me in that behalf, I, BOLA AHMED TINUBU,
President, Federal Republic of Nigeria make the following Order —
PART I — TAX CREDITS FOR NON-ASSOCIATED GAS
GREENFIELD DEVELOPMENT
1.—(1)  As from the commencement of this Order, the tax credit incentives
specified under subparagraphs (2) and (3) of this Paragraph shall apply to
Non-Associated Gas (NAG) greenfield developments in onshore and shallow
water locations, with first gas production on or before 1st January, 2029.
(2)  Where the Hydrocarbon Liquids (HCL) content —
(a)  does not exceed 30 barrels per million Standard Cubic Feet (SCF),
there shall be a gas tax credit at the rate of US$1.00 per thousand cubic
feet or 30% of the fiscal gas price, whichever is lower ; and
(b)  exceeds 30 barrels per million SCF but does not exceed 100 barrels
per million SCF, there shall be a gas tax credit at the rate of US$0.50 per
thousand cubic feet or 30% of the fiscal gas price, whichever is lower.
(3)  Any other greenfield NAG project with first commercial production
after 1st January, 2029 shall be eligible for gas tax allowance at a rate of
US$0.50 per thousand SCF or 30% of the fiscal gas price, whichever is lower,
provided that the Hydrocarbon Liquids content does not exceed 100 barrels
per million SCF.
(4)  The Hydrocarbon Liquids (HCL) content in a non-associated gas
field shall be as determined in a guideline issued by the Nigerian Upstream
Petroleum Regulatory Commission.
(5)  The gas tax credit shall apply for a maximum of 10 years, after
which it shall become a gas tax allowance claimable at the respective rates
set out in subparagraph (2) (a) and (b) of this Paragraph.
(6)  The gas tax credit accruable under this Paragraph in any year for a
company shall not —
(a)  exceed the companies income tax payable for that year by that
company ; and
Tax Credits
for Non-
associated
gas
S. I. No. 1 of 2024
Commence-
ment