To cut prices, the federal government has issued value-added tax (VAT) exemptions for various energy goods, including fuel, liquefied natural gas (LNG), compressed natural gas (CNG), and electric vehicles.
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, made this announcement on Wednesday.
According to Edun, these initiatives are intended to lower the cost of living, improve energy security, and accelerate Nigeria’s transition to cleaner energy sources.
“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,” the statement read in part.
Tax Incentives for Deep Offshore Oil & Gas Production
In addition, the Minister also announced the introduction of tax incentives for deep offshore oil operations and gas production, as outlined in the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
Edun stated that the initiative establishes Nigeria’s deep offshore basin as a leading global oil and gas investment destination.
He explained that these reforms are part of a broader set of investment-focused policy initiatives led by His Excellency President Bola Ahmed Tinubu by Policy Directives 40-42.
“Also, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects. This initiative positions 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,” Edun added.
