Federal Government Eliminates VAT on Diesel and Cooking Gas to Revitalize Oil and Gas Sector
The federal government has announced the removal of Value Added Tax (VAT) on diesel, cooking gas, and other products within the oil and gas sector.
In a statement from Mohammed Manga, director of information and public relations at the Ministry of Finance, the initiative is aimed at revitalizing Nigeria’s oil and gas industry and boosting investor confidence.
“The VAT Modification Order 2024 introduces exemptions on several 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 designed to lower the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources,” the statement explained.
Manga also highlighted that tax incentives for deep offshore oil and gas production would provide new tax relief for deep offshore projects.
“This initiative aims to position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments. These reforms are part of a wider range of investment-driven policy initiatives endorsed 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 improving Nigeria’s global competitiveness in oil and gas production.”
With these bold initiatives, Nigeria is poised to reclaim its status as a leader in the global oil and gas market.