All gas development projects including those engaged in power generation, liquid plants, fertilizer plants gas transmission and distribution pipelines are to be taxed under the provision of Companies Income Tax Act and not Petroleum Profit Tax Act.

All fiscal incentives under gas utilization downstream operation in 1997 is to be extended to industrial projects that use gas. The initial tax holiday period is extended from 3 to 5 years.

Gas is transferred at 0% Petroleum Profit Tax and 0% Royalty. The investment capital allowance is increased from 5% to 15%.

Interest on loan for gas project is to be deductible provided that prior approval is obtained from the Federal Ministry of Finance before taking the loan. All dividends distributed during the tax holiday shall be tax free.

Investment in Research and Development on improvement of Processes and products is deductible from the income in the years that the money for such investment has been spent. Such investments given a right for a tax-deduction of 120%.

Companies operating in the following areas:

1. Local Raw Materials

2. Local Value Added Process

3. Labor intensive Processes

4. Export Oriented Activities

5. In-plant Training are eligible for tax holiday of 5 years.

In line with trade liberalization policy to attract foreign Investments into the country, Nigerian has so far signed Double Taxation Agreement (DTA) with Philippines And Poland. The Government has commenced negotiation with Turkey, Russia, India, and Korea as well as other countries that have indicated interest in entering tax treaties with Nigeria.

Excise duty on local industries has been abolished.

Foreign Exchange is freely obtainable on the Autonomous Foreign Exchange Market (AFEM) subject to minimum documentation requirement.

Transactions in the Market shall be conducted in any convertible foreign currency through the Authorized Dealers (commercial and merchant banks).

Illegible transactions conducted in the market include.

1. Imports

2. Exports proceeds

3. traveling and medical expenses

4. Remittances of profit, dividend, external borrowing and repayment of external loans by the private sector, educational expenses, contract services as well as leasing, charter, and/or outright purchase of aircraft and Marine vessels.

Right to hold an Account: Any person, resident or non-Resident may hold an account in Nigeria. Such account may be denominated in Naira or in foreign currency.

Cash Import: Cash can be imported without limitation. However, a person who imports currency in excess of USD 10,000 by cash and deposits such money into the Domiciliary account with an authorized dealer, shall Only make cash withdrawals from that account.

Transactions Prohibited in Cash: No person in Nigeria shall Make or accept cash payment whether denominated in foreign currency or not for the purchase and acquisition of: Landed properties; Securities including, stocks shares, debentures and all forms of negotiable instruments; Motor vehicles.

Payment for Hotel Bill in Foreign Currency: Only hotels registered as Authorized Buyers shall receive from foreign visitors payment of hotel bills in foreign currency. However, payment of bills in foreign currency shall be optional and at the discretion of the foreign visitors making the payment.