- Updated
- October 2025
- Sections
- 15
- Questions
- 36
Key Facts
Core Framework
Section 22 (2) (b) of the Company-Income-Tax Act.pdf Income-Tax-Transfer-Pricing-Regulations 2018-2.pdf
Part V, Regulations 18 &19 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
The application of the provisions of the domestic transfer pricing rules is in a manner consistent with the OECD Transfer Pricing Guidelines. However, by the provisions of Part V Regulation 19, where any inconsistency exists between the provisions of any applicable laws, rules, regulations, the UN practical manual on Transfer Pricing and the OECD documents referred to in Regulation 18, the provisions of the relevant tax laws shall prevail.
Part III Regulation 11 (3) & (4) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(3) An uncontrolled transaction is comparable to a controlled transaction within the meaning of this regulation – (a) where there are no significant differences between the uncontrolled transaction and a controlled transaction under comparable circumstances which could materially affect the conditions being examined under the appropriate transfer pricing method; or (b) where such differences exist, reasonably accurate adjustments can be made in order to eliminate the effects of such differences, or reduce the effects of such differences, to the extent that all material differences are eliminated. (4) In determining whether two or more transactions are comparable, the following factors shall be considered to the extent that they are economically relevant to the facts and circumstances of the transactions – (a) the characteristics of the goods, property or services transferred or supplied; (b) the functions undertaken by the persons entering into the transaction taking into account the assets used and risks assumed; (c) the contractual terms of the transactions; (d) the economic circumstances under which the transactions were undertaken; and (e) the business strategies pursued by the connected persons to the controlled transaction.
Local comparables are largely unavailable.
Part II, Regulation 5(6) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(6) Where the application of the most appropriate method results in a number of financial indicators for which the degree of comparability of each to the controlled transactions, and to each other, is uncertain, a statistical approach shall be used. Where such an approach is used, the interquartile range shall be considered to be an arm’s length range.”
Documentation
Part IV, Regulations 13,14,15,16,17 and Schedule to Regulation 17 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 13 of the TP Regulations requires connected persons to file TP Declaration Form, which should be updated in any year there is a change in the information provided in declarations earlier filed. The TP Declaration Form must be filed within 18 months of incorporation or 6 months after the end of the first accounting period, whichever comes first. Any updates to the declaration are to be made and submitted to the FIRS within six months of the end of the accounting year in which the event occurred. Regulation 14 of the TP Regulations requires connected persons to file an annual TP Disclosure Form to disclose their controlled transactions. Any Taxpayer that enters into related-party transactions is expected to file an annual TP Disclosure Form not later than six months after the end of each accounting year or eighteen months after the date of incorporation, whichever is earlier. The form contains detailed information on the nature, value, and pricing method of controlled transactions.
Part IV, Regulations 13,14,15,16,17 and Schedule to Regulation 17 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 13 of the TP Regulations requires connected persons to file TP Declaration Form, which should be updated in any year there is a change in the information provided in declarations earlier filed. The TP Declaration Form must be filed within 18 months of incorporation or 6 months after the end of the first accounting period, whichever comes first. Any updates to the declaration are to be made and submitted to the FIRS within six months of the end of the accounting year in which the event occurred. Regulation 14 of the TP Regulations requires connected persons to file an annual TP Disclosure Form to disclose their controlled transactions. Any Taxpayer that enters into related-party transactions is expected to file an annual TP Disclosure Form not later than six months after the end of each accounting year or eighteen months after the date of incorporation, whichever is earlier. The form contains detailed information on the nature, value, and pricing method of controlled transactions.
Part IV, Regulations 13,14,15,16,17 and Schedule to Regulation 17 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 13 of the TP Regulations requires connected persons to file TP Declaration Form, which should be updated in any year there is a change in the information provided in declarations earlier filed. The TP Declaration Form must be filed within 18 months of incorporation or 6 months after the end of the first accounting period, whichever comes first. Any updates to the declaration are to be made and submitted to the FIRS within six months of the end of the accounting year in which the event occurred. Regulation 14 of the TP Regulations requires connected persons to file an annual TP Disclosure Form to disclose their controlled transactions. Any Taxpayer that enters into related-party transactions is expected to file an annual TP Disclosure Form not later than six months after the end of each accounting year or eighteen months after the date of incorporation, whichever is earlier. The form contains detailed information on the nature, value, and pricing method of controlled transactions.
Part IV, Regulations 16 (5) (8), and Part VI Regulation 20 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Part IV, Regulations 11,12 and 13 of the Income Tax (Country-By-Country Reporting) Regulations, 2018
TP Documentation: failure to submit to the Service TP documentation within 21 days of receiving a request from the Service shall attract an administrative penalty of a sum equal to ten million naira or 1% of the total value of all controlled transactions, whichever is higher and ten thousand naira for every day in which the failure continues. Extension of submission date for TP documentation: Where the taxable person fails to meet the extended submission, date granted administrative penalties for TP documentation shall apply as if no extension was granted. Exemption from documentation: A connected person whose total value of controlled transactions is less than three hundred million naira may choose not to maintain contemporaneous documentation; provided that, where the Service deems it necessary, it may demand that relevant documentation shall be prepared and submitted to the Service not later than 90 days from the date of receipt of a notice from the Service. Any person who fails to furnish the Service with any information or document required within the time specified in a notice shall be liable to an administrative penalty of a sum equal to 1% of the value of each controlled transaction for which the information or document was required in addition to ten thousand naira for each day in which the failure continues. General offence: A taxable person who contravenes any of the provisions of the TP Regulations for which no specific administrative penalty is provided for in the Regulations shall be liable to a penalty as prescribed in the relevant tax law. Country -by -Country Report: Late Filing of CbC Report: Where a Reporting Entity fails to file the Country -by -Country Report on or before the date specified in Regulation, the Federal Inland Revenue Service (FIRS) shall impose an administrative penalty of N10,000,000 in the first instance and N1,000,000 for every month in which the default continues. Filing An Incorrect or False CbC Report: Where a reporting entity files an incorrect or false CbC Report, FIRS shall impose an administrative penalty of N10,000,000. Failure To Provide Notification on whether it is the Ultimate Parent Entity or the Surrogate Parent Entity: Where a Constituent Entity of an MNE Group that Nigeria Updated July 2021 is resident for tax purposes in Nigeria fails to provide the notification FIRS shall impose an administrative penalty of N5,000,000 in the first instance and N10,000 for every day in which the default continues.
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
- Other
Selection: Most appropriate method
Dispute Resolution
Part II, Regulation 9 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Guidelines On Advance Pricing Agreements (APAs) NIGERIA_APA_GUIDELINES-1.pdf
Regulation 9 of the TP Regulation allows FIRS to enter into an Advance Pricing Agreement with a taxable person either alone or together with the competent authority of countries of the connected person. Nigeria published its APA Guidelines on 27th November 2024. An Advance Pricing Agreement entered into with FIRS shall apply to the controlled transactions for a period not exceeding three years. The APA Guidelines allows for a rollback of an APA. Nigeria has in place a MAP Guidelines, which provides the rules, guidelines and procedures on how taxpayers can access and use MAP. The Nigerian MAP Profile is also published on OECD website.
Part II, Regulation 9 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Guidelines On Advance Pricing Agreements (APAs) NIGERIA_APA_GUIDELINES-1.pdf
Regulation 9 of the TP Regulation allows FIRS to enter into an Advance Pricing Agreement with a taxable person either alone or together with the competent authority of countries of the connected person. Nigeria published its APA Guidelines on 27th November 2024. An Advance Pricing Agreement entered into with FIRS shall apply to the controlled transactions for a period not exceeding three years. The APA Guidelines allows for a rollback of an APA. Nigeria has in place a MAP Guidelines, which provides the rules, guidelines and procedures on how taxpayers can access and use MAP. The Nigerian MAP Profile is also published on OECD website.
Simplifications
Part VII, Regulation 22 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
A connected person may be exempted from the requirements of regulation 16 of the TP Regulations where the controlled transactions are priced in accordance with specific guidelines that may be published by the Service for that purpose from time to time. However, the Service has not published a guideline for the implementation of the provision.
Special Topics
Part II, Regulation 7 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 7 contains guidance specific to the pricing of controlled transactions involving intangibles.
No, the HTVI approach has not been adopted in domestic legislation in Nigeria. However, reference can be made to the OECD TPG as permitted by Regulation 18 of the Nigeria TP Regulation
Part II, Regulation 6 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Full OECD Questionnaire
Legal ReferenceSection 22 (2) (b) of the Company-Income-Tax Act.pdf Income-Tax-Transfer-Pricing-Regulations 2018-2.pdf
Legal ReferencePart V, Regulations 18 &19 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
The application of the provisions of the domestic transfer pricing rules is in a manner consistent with the OECD Transfer Pricing Guidelines. However, by the provisions of Part V Regulation 19, where any inconsistency exists between the provisions of any applicable laws, rules, regulations, the UN practical manual on Transfer Pricing and the OECD documents referred to in Regulation 18, the provisions of the relevant tax laws shall prevail.
Legal ReferencePart III, Regulation 12 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Seventh Schedule, Paragraph 6 (a) of Company-Income-Tax-Act.pdf
“(1) Generally, persons are deemed to be connected where one person has the ability to control or influence the other person in making financial, commercial or operational decisions, or there is a third person who has the ability to control or influence both persons in making financial, commercial, or operational decisions. (2) In these Regulations, “connected person” include persons who are related, associated, or connected to one another as defined in – (a) the Companies Income Tax Act, CAP. C21, Laws of the Federation of Nigeria, 2004 (as amended); (b) the Petroleum Profit Tax Act, CAP. P13, Laws of the Federation of Nigeria, 2004; (c) the Personal Income Tax Act, CAP. P8, Laws of the Federation of Nigeria, 2004 (as amended); Nigeria Updated July 2021 (d) the Capital Gains Tax Act, CAP. C1, Laws of the Federation of Nigeria, 2004; (e) Article 9 of the OECD and UN Model Tax Convention and the Agreements for Double Taxation between Nigeria and other countries; and (f) the OECD TP guidelines and UN TP manual. AND Paragraph 6 of the Seventh Schedule to the Company Income Tax Act states that “For the purposes of this section, the expression- (a)” connected person” means- (i) any person controlled by or under common control, ownership or management. (ii) any person who is not connected but receives an implicit or explicit guarantee or deposit for the provision of corresponding or matching debts, or (iii) any related party as described under the Nigerian Transfer Pricing Regulation 2018.”
Legal ReferencePart II, Regulation 5(1) and (4) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
5(4) A connected person may apply a transfer pricing method other than those listed in this regulation, where the person can establish, to the satisfaction of the Service, that – (a) none of the listed methods can be reasonably applied to determine whether a controlled transaction is consistent with the arm’s length principle; (b) the method used gives rise to a result that is consistent with that between independent persons engaging in comparable uncontrolled transactions in comparable circumstances; and (c) reliable information needed to apply the chosen transfer pricing method exists.
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (provided)
Legal ReferencePart II, Regulation 5(2) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(2) In each case, the most appropriate transfer pricing method shall be used taking into account the – (a) respective strengths and weaknesses of the transfer pricing method in the circumstances of the case; (b) appropriateness of a transfer pricing method having regard to the nature of the controlled transaction determined, in particular, through an analysis of the functions performed, assets employed and risks assumed by each person that is a party to the controlled transaction; (c) availability of reliable information needed to apply the transfer pricing method; and (d) degree of comparability between controlled and uncontrolled transactions, including the reliability of adjustments, if any, that may be required to eliminate any differences between comparable transactions.”
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (if so, please explain) (not selected)
Legal ReferencePart II, Regulation 5(9) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(9) Notwithstanding any other provision in these Regulations, where a person chargeable to tax in Nigeria engages directly or indirectly in a transaction with a connected person for the export or import of commodities and: (a) in the case of export, the price that was agreed upon with the connected person is lower than the quoted price, the quoted price on the “date of transaction’’, regardless of the means of transport, shall be, the sale price for the purposes of computing the taxable income of that person, unless the person provides all of the evidence needed to show that adjustments are appropriate to that quoted price to be consistent with the arm’s length principle, (b) in the case of import, the price that was agreed upon with the connected person is higher than the quoted price, the quoted price on the “date of transaction’’, regardless of the means of transport, shall be, the sale price for the purposes of computing the taxable income of that person, unless the person provides all of the evidence needed to show that adjustments are appropriate to that quoted price to be consistent with the arm’s length principle. Provided that in the case of goods exported from Nigeria that are subsequently sold by a related party to an unrelated party, if the price agreed upon between that related party and the unrelated person is higher than the quoted price at the abovementioned date, the agreed price, in this case, will be considered as the sale price for the purposes of computing the seller’s taxable income in Nigeria unless the person provides all of the evidence needed to show that adjustments are appropriate to that sale price to be consistent with the arm’s length principle.”
Legal ReferencePart III Regulation 11 (3) & (4) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(3) An uncontrolled transaction is comparable to a controlled transaction within the meaning of this regulation – (a) where there are no significant differences between the uncontrolled transaction and a controlled transaction under comparable circumstances which could materially affect the conditions being examined under the appropriate transfer pricing method; or (b) where such differences exist, reasonably accurate adjustments can be made in order to eliminate the effects of such differences, or reduce the effects of such differences, to the extent that all material differences are eliminated. (4) In determining whether two or more transactions are comparable, the following factors shall be considered to the extent that they are economically relevant to the facts and circumstances of the transactions – (a) the characteristics of the goods, property or services transferred or supplied; (b) the functions undertaken by the persons entering into the transaction taking into account the assets used and risks assumed; (c) the contractual terms of the transactions; (d) the economic circumstances under which the transactions were undertaken; and (e) the business strategies pursued by the connected persons to the controlled transaction.
Local comparables are largely unavailable.
Legal ReferencePart II, Regulation 5(6) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(6) Where the application of the most appropriate method results in a number of financial indicators for which the degree of comparability of each to the controlled transactions, and to each other, is uncertain, a statistical approach shall be used. Where such an approach is used, the interquartile range shall be considered to be an arm’s length range.”
Legal ReferencePart III, Regulation 11 (3) (b) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
(b) where such differences exist, reasonably accurate adjustments can be made in order to eliminate the effects of such differences, or reduce the effects of such differences, to the extent that all material differences are eliminated.”
Legal ReferencePart II, Regulation 7 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 7 contains guidance specific to the pricing of controlled transactions involving intangibles.
Legal ReferenceSection 78 of the Company-Income-Tax Act.pdf
Deduction of tax from interest, royalties, etc. Where any interest (other than interest on interbank deposit) or royalty becomes due from one company to another company or to any person to whom the provision of personal income tax Act applies, the company making such payment shall, at the date when payment is made or credited whichever first occurs deduct therefrom tax at the rate prescribed in subsection 2 of this section and shall forthwith pay over to the Board the amount so deducted.
No, the HTVI approach has not been adopted in domestic legislation in Nigeria. However, reference can be made to the OECD TPG as permitted by Regulation 18 of the Nigeria TP Regulation
Legal ReferencePart II, Regulation 6 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
A simplified approach for low value-adding intra-group services has not been adopted in domestic legislation in Nigeria. However, reference can be made to the OECD TPG as permitted by Regulation 18 of the Nigeria TP Regulation
Legal ReferenceSeventh schedule “Deductible Interest” of the Company-Income-Tax-Act.pdf
The Companies income tax Act has a provision on interest deductibility rule consistent with the recommendations of BEPS Action 4 Report. The rules cover connected persons, and deductions are limited to 30% of earnings before interest, taxes, depreciation and amortisation.
The TP Regulations do not expressly mention Cost Contribution Arrangements. However, reference can be made to the OECD TPG as permitted by Regulation 18 of the Nigeria TP Regulations.
Legal ReferencePart IV, Regulations 13,14,15,16,17 and Schedule to Regulation 17 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Regulation 13 of the TP Regulations requires connected persons to file TP Declaration Form, which should be updated in any year there is a change in the information provided in declarations earlier filed. The TP Declaration Form must be filed within 18 months of incorporation or 6 months after the end of the first accounting period, whichever comes first. Any updates to the declaration are to be made and submitted to the FIRS within six months of the end of the accounting year in which the event occurred. Regulation 14 of the TP Regulations requires connected persons to file an annual TP Disclosure Form to disclose their controlled transactions. Any Taxpayer that enters into related-party transactions is expected to file an annual TP Disclosure Form not later than six months after the end of each accounting year or eighteen months after the date of incorporation, whichever is earlier. The form contains detailed information on the nature, value, and pricing method of controlled transactions.
- Master file consistent with Annex I to Chapter V of the TPG (selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (selected)
- Other (specify): (not selected)
Legal ReferencePart IV, Regulations 16 (1) (4) & (5), 17 (1) & (3) and Part VII Regulations 24 and schedule 1 and 2 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Part III, Regulation 9 and 14 of the Income Tax (Country-By-Country Reporting) Regulations, 2018
TP Documentation: A connected person shall record, in writing or on any other electronic device or medium, sufficient information or data with an analysis of such information and data to verify that the pricing of controlled transactions is consistent with the arm’s length principle (documentation) and shall make such documentation available to the Service upon written request by the Service. A connected person shall maintain contemporaneous documentation consistent with the provisions of the Schedule to the Regulations. TP documentation shall be in place prior to the due date for filing the income tax return for the year in which the documented transactions occurred (contemporaneous documentation). The documentation is expected to be submitted to the Service within 21 days of receiving a request from the Service. A connected person whose total value of controlled transactions is less than three hundred million naira may choose not to maintain contemporaneous documentation; provided that, where the Service deems it necessary, it may demand that relevant documentation shall be prepared and submitted to the Service not later than 90 days from the date of receipt of a notice from the Service. Country-by-Country Report: The Country-by-Country Report should be filed not later than 12 months after the last day of the Reporting Accounting Year of the MNE Group. The official language for purposes of documentation is the English language. Where a document is not in the English language, the Service may, by written notice require the taxpayer to, at his own expense, produce a translation in the official language, prepared and certified by a sworn translator or another person approved by the Service.
Legal ReferencePart IV, Regulations 16 (5) (8), and Part VI Regulation 20 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Part IV, Regulations 11,12 and 13 of the Income Tax (Country-By-Country Reporting) Regulations, 2018
TP Documentation: failure to submit to the Service TP documentation within 21 days of receiving a request from the Service shall attract an administrative penalty of a sum equal to ten million naira or 1% of the total value of all controlled transactions, whichever is higher and ten thousand naira for every day in which the failure continues. Extension of submission date for TP documentation: Where the taxable person fails to meet the extended submission, date granted administrative penalties for TP documentation shall apply as if no extension was granted. Exemption from documentation: A connected person whose total value of controlled transactions is less than three hundred million naira may choose not to maintain contemporaneous documentation; provided that, where the Service deems it necessary, it may demand that relevant documentation shall be prepared and submitted to the Service not later than 90 days from the date of receipt of a notice from the Service. Any person who fails to furnish the Service with any information or document required within the time specified in a notice shall be liable to an administrative penalty of a sum equal to 1% of the value of each controlled transaction for which the information or document was required in addition to ten thousand naira for each day in which the failure continues. General offence: A taxable person who contravenes any of the provisions of the TP Regulations for which no specific administrative penalty is provided for in the Regulations shall be liable to a penalty as prescribed in the relevant tax law. Country -by -Country Report: Late Filing of CbC Report: Where a Reporting Entity fails to file the Country -by -Country Report on or before the date specified in Regulation, the Federal Inland Revenue Service (FIRS) shall impose an administrative penalty of N10,000,000 in the first instance and N1,000,000 for every month in which the default continues. Filing An Incorrect or False CbC Report: Where a reporting entity files an incorrect or false CbC Report, FIRS shall impose an administrative penalty of N10,000,000. Failure To Provide Notification on whether it is the Ultimate Parent Entity or the Surrogate Parent Entity: Where a Constituent Entity of an MNE Group that Nigeria Updated July 2021 is resident for tax purposes in Nigeria fails to provide the notification FIRS shall impose an administrative penalty of N5,000,000 in the first instance and N10,000 for every day in which the default continues.
Legal ReferencePart IV, Regulation 17(3) of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
A connected person whose total value of controlled transactions is less than three hundred million naira may choose not to maintain contemporaneous documentation; provided that, where FIRS deems it necessary, it may demand that relevant documentation shall be prepared and submitted to the Service not later than 90 days from the date of receipt of a notice from the Service.
Legal ReferencePart II, Regulation 9 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf Guidelines On Advance Pricing Agreements (APAs) NIGERIA_APA_GUIDELINES-1.pdf
Regulation 9 of the TP Regulation allows FIRS to enter into an Advance Pricing Agreement with a taxable person either alone or together with the competent authority of countries of the connected person. Nigeria published its APA Guidelines on 27th November 2024. An Advance Pricing Agreement entered into with FIRS shall apply to the controlled transactions for a period not exceeding three years. The APA Guidelines allows for a rollback of an APA. Nigeria has in place a MAP Guidelines, which provides the rules, guidelines and procedures on how taxpayers can access and use MAP. The Nigerian MAP Profile is also published on OECD website.
- Rulings (selected)
- Enhanced engagement or cooperative compliance programmes (not selected)
- Advance Pricing Agreements (APA) (selected)
- Mutual Agreement Procedures (selected)
- Other (please specify): Decision Review Panel – Regulation 21 set up the Decision Review Panel for an administrative review of TP adjustment or any other TP related decision communicated to a taxpayer, upon a request from the taxpayer. (selected)
Legal ReferencePart VII, Regulation 22 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
A connected person may be exempted from the requirements of regulation 16 of the TP Regulations where the controlled transactions are priced in accordance with specific guidelines that may be published by the Service for that purpose from time to time. However, the Service has not published a guideline for the implementation of the provision.
Legal ReferencePart II, Regulation 10 of the Income-Tax-Transfer-Pricing-Regulations-2018-2.pdf
Legal ReferenceSection 90 of the Company-Income-Tax Act.pdf
Section 90 of the Companies Income Tax Act allows a company to, within 6 years of filing the returns, make any necessary corrections or adjustments.
The TP Regulations do not explicitly provide for secondary adjustment.
Some of our Agreements contain Article 7 of the UN Model (with the full force of attraction rule in paragraph 1). Others are hybrids of the UN Model and Article 7 of the OECD MTC as it read before 2010. (i.e. they have a limited force of attraction rule, a limited force of attraction rule that acts anti-abuse rule, limited expense deductibility rule in paragraph 3, or modified paragraph on non-attribution of profit to permanent establishment for mere purchase).
- Article 7, as it read before 2010. (not selected)
- Article 7 as it reads after 2010. (not selected)
- Other (please provide additional details) (selected)
Nigeria adopts the force of attraction principle under the UN Model and limited expense deductibility of head office expenses as contained in the UN Model
Nigeria’s TP regulation does not specify how profit will be attributed to PE, but such attribution must satisfy the Arm’s length principle.
Other legislative procedures regarding transfer pricing include: (a) Section 17 of Personal Income Tax Act, CAP. P8, Laws of the Federation of Nigeria, 2004; (b) Section 15 of Petroleum Profits Tax Act, CAP. 13, Laws of the Federation of Nigeria, 2004 (as amended by the Petroleum Profits Tax (Amendment) Act, 2007; (c) Section 20 of Capital Gains Tax Act, CAP. C1, Laws of the Federation of Nigeria, 2004.
Nigeria is preparing a new TP Regulations to align with the recently enacted Tax Acts that becomes effective from 1st January 2026.
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