President Bola Tinubu’s administration has announced value added tax (VAT) exemptions for various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others, in order to reduce prices.
This was disclosed in a statement made by the Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun, on Wednesday.
He said these measures are designed to cut down the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources.
Edun said, “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.”
He added that “these measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources”.
Also, he said the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
Edun stated that this initiative aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
He explained that these reforms are part of a broader set of investment-focused policy initiatives led by His Excellency, President Bola Ahmed Tinubu, in accordance with Policy Directives 40-42.
“In addition, the Notice of Tax Incentives for Deep Offshore Oil & 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” Edun added
