The Federal Government said it has removed Value Added Tax (VAT) on diesel and cooking gas, among others as part of measures to cushion the harsh economic realities in the country.
Unveiling two major fiscal incentives, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said VAT was modified to reduce the hardship citizens battle.
Edun, in a statement by the Director, Information and Public Relations at the Ministry of Finance, Mohammed Manga, said the incentives are aimed at transforming Nigeria’s oil and gas sector.
He identified the incentives as value-added tax (VAT) modification order 2024 and notice of tax incentives for deep offshore oil and gas production, in accordance with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.
Explaining the incentives further, the Minister stated that 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.
According to him, the measures are designed to lower the cost of living, reinforce energy security, and boost the nation’s transition to cleaner energy sources.
In addition, he said the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects, adding that the initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
The minister maintained that the reforms are part of a broader series of investment-driven policy initiatives championed by President Tinubu, in line with Policy Directives 40-42.
He said the policies are pointers to the Federal Government’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.
Edun assured that the initiatives would ensure Nigeria’s firm track to reclaim its position as a leader in the global oil and gas market.
According to him, these fiscal incentives demonstrate President Tinubu’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
