Mohammed Shosanya
The Federal Government has removed diesel,Liquefied Petroleum Gas (LNG),also known as cooking gas, Compressed Natural Gas (CNG), and electric vehicles, among others from value added tax (VAT).
Mohammed Manga, Director, Information and Public Relations in the Federal Ministry of Finance disclosed this in a statement on Wednesday.
According to him,the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector.
He added:“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”.
He explained that the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
He stated that this initiative aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
According to him,these reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Ahmed Tinubu, in line with Policy Directives 40-42.
He said:”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.
“These bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market, adding that these fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians”.
