The Federal Government of Nigeria has officially exempted several key energy products from Value Added Tax (VAT). These products include diesel, Liquefied Natural Gas (LNG), commonly known as cooking gas, Compressed Natural Gas (CNG), and electric vehicles.
This announcement was made by Mohammed Manga, Director of Information and Public Relations in the Federal Ministry of Finance, through a statement on Wednesday. According to Manga, the Finance Minister and Coordinating Minister of the Economy, Wale Edun, introduced two significant fiscal incentives aimed at boosting Nigeria’s oil and gas sector.
“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,” Manga quoted the Minister as saying.
These measures, as Edun explained, are designed to reduce the high cost of living, strengthen energy security, and accelerate Nigeria’s transition to cleaner energy sources.
Additionally, the statement outlined that the Notice of Tax Incentives for Deep Offshore Oil & Gas Production offers new tax reliefs aimed at enhancing deep offshore oil and gas projects. This initiative is part of broader efforts to position Nigeria’s deep offshore basin as a top global investment destination for oil and gas production.
“These reforms are part of a series of investment-driven policies spearheaded by President Bola Ahmed Tinubu, aligned with Policy Directives 40-42,” Manga added.
The administration’s drive to enhance Nigeria’s global competitiveness and promote sustainable growth within the energy sector is at the heart of these measures. According to Manga, these fiscal incentives reflect the government’s strong commitment to securing Nigeria’s leadership position in the global oil and gas market, boosting energy security, and ensuring economic prosperity for all citizens.
