ABUJA – The Federal Government has officially announced exemptions on value-added tax (VAT) for several energy products, including diesel, liquefied natural gas (LNG), commonly referred to as cooking gas, Compressed Natural Gas (CNG), and electric vehicles. This move aims to significantly reduce prices for consumers and stimulate market growth in the energy sector.
This information was shared in a statement by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Wednesday. Edun highlighted that these measures are designed to lower the cost of living, improve energy security, and accelerate Nigeria’s transition to cleaner energy sources. Additionally, the government introduced the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, which offers new tax reliefs for deep offshore projects.
The statement from the Federal Ministry of Finance noted that the VAT Modification Order 2024 brings exemptions on various essential 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 indeed aimed at lowering the cost of living, strengthening energy security, and expediting Nigeria’s shift to cleaner energy sources. The introduction of the Notice of Tax Incentives for Deep Offshore Oil & Gas Production is a significant step, providing new tax reliefs to attract global investments in Nigeria’s deep offshore basin.Furthermore, this initiative aligns with President Bola Ahmed Tinubu’s broader investment-driven policy directives and underscores the administration’s commitment to sustainable growth in the energy sector, enhancing Nigeria’s competitiveness in oil and gas production.In related news, the Federal Government has also gazetted the regulation on Withholding Tax (WHT), with implementation set to begin on January 1, 2025.
