The Federal Government of Nigeria has announced significant tax incentives aimed at boosting the energy sector, particularly in the areas of clean energy and deep offshore oil and gas production. President Bola Tinubu’s administration has introduced a Value Added Tax (VAT) exemption on various energy products and infrastructure, including Diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, and Clean Cooking Equipment.
The announcement was made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a briefing on Wednesday. He explained that these measures are part of a broader strategy to revitalize Nigeria’s oil and gas sector.
According to the statement from the Federal Ministry of Finance, the new VAT Modification Order 2024 includes exemptions on key energy products. This initiative is designed to lower living costs, improve energy security, and support Nigeria’s transition to cleaner energy sources.
In addition to the VAT exemptions, the government introduced the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, which aims to provide tax relief for deep offshore projects. This move is intended to position Nigeria’s deep offshore basin as a top destination for global oil and gas investments.
The statement emphasized that these reforms reflect the Tinubu administration’s commitment to fostering sustainable growth in the energy sector. The initiatives are aligned with President Tinubu’s policy directives aimed at enhancing Nigeria’s competitiveness in oil and gas production.
The new fiscal policies are expected to encourage investment and drive development in Nigeria’s energy sector, paving the way for a more sustainable economic future.
