Section 129 — Late payment of tax

(1) Where any tax, royalty or remittance due from a company involved or engaged in upstream petroleum operations is not paid on the due date, it shall be a debt and—

(a) a sum equal to 10% of the amount payable shall be added to the tax, royalty or remittance due;

(b) in the case of a foreign currency transaction, the tax, royalty or remittance due shall incur interest at the prevailing SOFR or any other successor rate plus 10%; or

(c) in the case of transactions in Naira, the tax, royalty or remittance due shall incur interest at 2% above the prevailing Central Bank Monetary Policy Rate.

(2) In addition to the provisions of subsection (1) of this section, the licensee or lessee shall be liable to—

(a) ₦10,000,000.00 or US Dollar equivalent on the first day of the failure to pay the tax, royalty or remittance; and

(b) ₦2,000,000.00 or US Dollar equivalent for each day in which the failure continues.

(3) Notwithstanding the provisions of subsections (1) and (2), the Service may, with the assistance of the Commission or Authority—

(a) distrain the licensee or lessee of its oil well, crude oil, condensates, natural gas or natural gas liquid, petroleum products, engines, machinery, tools, implements or other effects; or

(b) cancel, revoke, seize, distrain or dispose the licenses or rights of the holder.