The Federal Government has exempted a variety of energy products from value-added tax (VAT), including diesel, Liquefied Natural Gas (LNG), commonly known as cooking gas, Compressed Natural Gas (CNG), and electric vehicles.
The announcement came from Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, in a statement released on Wednesday.
He conveyed that Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, introduced two key fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector.
Manga stated, “The VAT Modification Order 2024 introduces exemptions for a range of essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, LNG infrastructure, and Clean Cooking Equipment.”
He added that “these measures are designed to reduce the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
Additionally, he mentioned the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, which introduces new tax reliefs for deep offshore projects.
Manga emphasized that this initiative aims to position Nigeria’s deep offshore basin as a premier destination for global oil and gas investment.
These reforms are part of a wider array of investment-driven policy initiatives led by President Bola Ahmed Tinubu, aligned 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.
He asserted that with these bold initiatives, Nigeria is firmly on track to reclaim its status as a leader in the global oil and gas market, asserting that these fiscal incentives demonstrate the administration’s unwavering dedication to promoting sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
