VAT Exemption Announced For Diesel And Cooking Gas By The FG

VAT Exemption Announced For Diesel And Cooking Gas By The FG....KINDLY READ THE FULL STORY HERE▶

The Federal Government has introduced new tax relief measures aimed at stimulating investments in deep offshore oil and gas production. In a statement on Wednesday, Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced that the importation of essential energy products and infrastructure—such as diesel, feed gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, Liquefied Natural Gas (LNG) infrastructure, and clean cooking equipment—will be exempt from value-added tax (VAT)…….CONTINUE READING 

The announcement, made by the Director of Information and Public Relations, Mohammed Manga, is intended to position Nigeria’s deep offshore basin as a leading destination for global oil and gas investments. It also aims to enhance energy security and accelerate the country’s transition to cleaner energy sources.

This policy comes as ExxonMobil and Seplat unveil new divestment plans, which President Bola Tinubu is expected to approve shortly. The statement highlighted that the Federal Government is committed to revitalizing both the upstream and downstream sectors of the oil and gas industry through these groundbreaking concessions.

Manga elaborated that the VAT Modification Order 2024 establishes exemptions for a range of crucial energy products and infrastructure, designed to reduce living costs, strengthen energy security, and facilitate Nigeria’s transition to sustainable energy.

The notice of tax incentives for deep offshore oil and gas production introduces additional tax reliefs for such projects, reinforcing the aim to make Nigeria’s deep offshore basin an attractive option for global investment.

These fiscal measures are part of a broader strategy led by President Bola Tinubu to foster sustainable growth, improve energy security, and promote economic prosperity for all Nigerians. The reforms align with Policy Directives 40-42, reflecting the administration’s commitment to enhancing Nigeria’s competitiveness in the global oil and gas market. With these initiatives, Nigeria aims to reclaim its position as a leader in the global oil and gas industry.

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