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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(b)  be combined with the Associated Gas Framework Agreement
(AGFA) incentives for the same greenfield NAG project.
2. Where there is a gas tax credit surplus in any year, the surplus shall
be carried forward to the subsequent year, provided that tax credit surplus
shall only be carried forward for a maximum of three years.
3. The fiscal gas price for calculating a gas tax credit under this Order
shall be the same price used for determining royalties under the Petroleum
Industry Act (PIA).
PART II — MIDSTREAM CAPITAL AND GAS UTILIZATION INVESTMENT ALLOWANCE
4.—(1)  A gas company shall be granted a gas utilization investment
allowance on qualifying expenditure on plant and equipment incurred by the
company in respect of any new and ongoing project in the midstream oil and
gas industry and subsisting on the effective date of this Order.
(2)  The gas utilization investment allowance under subparagraph (1) of
this Paragraph shall —
(a)  be granted as an allowable deduction from the assessable profits of
the eligible company from the year of purchase of the relevant plant and
equipment ; and
(b)  not be taken into account in ascertaining the residue of qualifying
expenditure incurred on such plant and equipment.
(3)  A company shall only be granted the gas utilization investment
allowance upon the expiration of the tax-free period granted under section
39(1) of the Companies Income Tax Act.
5. The rate of the gas utilization investment allowance to be allowed to
a company under this Order shall be 25 per cent of the actual expenditure
incurred on such plant and equipment purchased.
6. The Federal Inland Revenue Service shall, in conjunction with the
Nigerian Midstream and Downstream Petroleum Regulatory Authority, take
appropriate steps to implement the gas utilization investment allowance
stipulated under this Part, within 15 days from the date of this Order.
7.—(1)  Notwithstanding the provisions of this Part, a gas utilization
investment  allowance shall not apply on any qualifying expenditure incurred
on plant and equipment within a period of five years from the date on which
the expenditure was incurred, where —
(a)  a sale or transfer of the plant and equipment representing the
expenditure is made by the company incurring the expenditure otherwise
Gas tax
credit
surplus
Calculation
of tax credit
Incentive to
gas
utilization
companies
Rate of gas
utilization
investment
allowance
Implementa-
tion of gas
utilization
investment
allowance
Non-
application
of gas
utilization
investment
allowance