The federal government says it has halted Value Added Tax (VAT) on diesel, cooking gas, and other products in the oil and gas industry.
According to Mohammed Manga, head of media and public relations at the Ministry of Finance, the move is intended to revitalise Nigeria’s oil and gas sector while also boosting investor confidence.
“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.
He stated that the notification of tax incentives for deep offshore oil and gas production creates new tax breaks for deep offshore enterprises.
“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.”
He stated that with these bold steps, Nigeria is well on its way to reclaiming its place as a global oil and gas market leader.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli