Abuja, Nigeria – The Federal Government has announced the removal of Value Added Tax (VAT) on key energy products, including diesel and cooking gas, as part of new fiscal incentives aimed at revitalising Nigeria’s oil and gas sector.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, unveiled the measures on Wednesday, which include the VAT Modification Order 2024 and new tax incentives for deep offshore oil and gas production.
A statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, detailed that the VAT exemptions will apply to Diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Feed Gas, Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment. These changes are designed to reduce the cost of living, enhance energy security, and support Nigeria’s transition to cleaner energy sources.
In addition, the government has introduced tax reliefs for deep offshore oil and gas projects under the new Notice of Tax Incentives for Deep Offshore Oil & Gas Production. This is expected to attract global investment to Nigeria’s deep offshore basin and bolster its competitiveness in the energy sector.
These initiatives are part of President Bola Ahmed Tinubu’s broader policy reforms aimed at fostering sustainable growth in the energy sector and driving economic prosperity for all Nigerians.
Manga added that these measures demonstrate the administration’s dedication to securing Nigeria’s leadership in the global oil and gas market while ensuring long-term energy security for the nation.
