The Federal Government has announced exemption on Value Added Tax (VAT) payments for energy products, including diesel, cooking gas and Compressed Natural Gas (CNG), as well as electric vehicles, among others.
The exemption, according to the government, is in furtherance of efforts to crash the prices of the products, reduce the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources.
Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun, said in a statement that “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.”
Edun further disclosed that tax incentives had also been approved for deep offshore oil operations and gas production, as outlined in the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
According to the minister, the initiative is designed to establish Nigeria’s deep offshore basin as a leading destination for global oil and gas investments.
He explained that the reforms are part of a broader set of investment-focused policy initiatives led by President Bola Ahmed Tinubu, in accordance 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.
