The Federal Government of Nigeria has announced value-added tax (VAT) exemptions for several energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles.
This initiative, revealed by the Minister of Finance, Mr. Wale Edun, aims to reduce the cost of living, enhance energy security, and promote the country’s transition to cleaner energy sources.
The VAT exemptions, outlined in the VAT Modification Order 2024, also cover infrastructure for clean energy technologies like electric vehicles and clean cooking equipment.
In addition, tax incentives for deep offshore oil and gas production have been introduced under the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
These incentives are designed to make Nigeria’s deep offshore basin a top destination for global oil and gas investments.
The reforms are part of broader policies championed by President Bola Ahmed Tinubu, aimed at fostering growth in the energy sector and boosting Nigeria’s global competitiveness.
These tax reforms are part of the government’s ongoing tax and fiscal reform initiative, launched after President Tinubu established a tax policy committee in August 2023.
The committee, led by tax expert Taiwo Oyedele, is focused on creating policies that promote economic growth, including raising VAT and providing tax relief for low-income earners.
Daily Trust