President Bola Tinubu’s administration has announced a Value Added Tax (VAT) exemption for various energy products, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Additionally, the government introduced the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, which offers new tax reliefs for deep offshore projects.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed these significant fiscal incentives on Wednesday, emphasizing their goal of revitalizing Nigeria’s oil and gas sector.
He stated that these initiatives comprise the VAT Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, both of which align with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
A statement issued on Wednesday by the Federal Ministry of Finance said: “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
“In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
“These reforms are part of a broader series of investment-driven policy initiatives championed by His Excellency, President Bola Ahmed Tinubu, in line with Policy Directives 40-42.
“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.”
