The Federal Government of Nigeria has announced significant tax relief measures aimed at stimulating investments in the oil and gas sector. Effective immediately, the importation of key energy products, including diesel, feed gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment will no longer be subject to value-added tax (VAT).
Minister of Finance and Coordinating Minister for the Economy, Wale Edun, revealed these changes in a statement on Wednesday. The initiative is part of the government’s strategy to position Nigeria’s deep offshore basin as a leading destination for global oil and gas investments, enhance energy security, and facilitate a transition to cleaner energy sources.
According to the statement, which was signed by Director of Information and Public Relations, Mohammed Manga, the new VAT Modification Order 2024 is designed to reduce living costs and promote energy security. It complements recent divestment plans by ExxonMobil and Seplat, which are expected to receive ministerial approval soon.
The announcement outlined two major fiscal incentives: the Value Added Tax Modification Order 2024 and a Notice of Tax Incentives for Deep Offshore Oil & Gas Production. These measures reflect the administration’s commitment to revitalizing the energy sector and driving economic growth.
The government emphasized that these reforms are part of a broader initiative under President Bola Tinubu’s administration to enhance Nigeria’s competitiveness in the global oil and gas market and ensure sustainable growth within the industry.
