The federal government has announced the suspension of Value Added Tax (VAT) on diesel, cooking gas, and other products within the oil and gas sector.
In a statement, Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, explained that this decision is part of an effort to revitalize Nigeria’s oil and gas sector and to increase 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 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.”
With these bold initiatives, he said Nigeria is solidly on track to reclaim its position as a leader in the global oil and gas market.
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