In a bid to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources, the federal government has introduced 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.
The government said the concessions aimed at revitalizing the oil and gas industry to ensure a boost in Nigeria’s upstream and downstream sectors.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this as he unveiled two major fiscal incentives on Wednesday.
Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, in a statement on Wednesday said the incentives are aimed at revitalizing Nigeria’s oil and gas sector.
The spokesperson said they include 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.
He said, “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.”
He said the notice of tax incentives for deep offshore oil and gas production provides new tax reliefs for deep offshore projects.
“This initiative is aimed at positioning 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,” Manga said.
He said Nigeria is solidly on track to reclaim its position as a leader in the global oil and gas market with these bold initiatives.
