Nigeria Tax Act, 2025 · NTA s.27, First Schedule
Capital allowances on what you buy to trade with
Qualifying capital spend is relieved through capital allowances against the profits it helped make.
Who this lands on: Any business holding equipment, vehicles, plant, buildings or other fixed assets.
Total profits are assessable profits less allowable losses and capital allowances computed under Part I of the First Schedule (NTA s.27(1)).
The allowance follows the qualifying capital expenditure that generated the assessable profits. Where the asset is only partly used in the business, the allowance is prorated to the taxable portion (NTA s.27(3)).
No proration is required where the non-taxable income is under 10% of total income (NTA s.27(4)).
An asset on which VAT was due but not charged, or an import whose duty was not paid, is not qualifying capital expenditure at all (NTA s.27(2)(b)).
Keeping an accurate asset register is what makes the claim provable — cost, date and use.