Minister of Finance and Coordinating Minister for the Economy, Olawale Edun
The Federal Government has introduced tax exemptions on critical energy products and infrastructure, alongside fiscal incentives for the upstream and downstream oil and gas sectors.
This move, according to the government, is part of its “determined efforts to boost the nation’s upstream and downstream sectors.”
In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced two major fiscal incentives on Tuesday aimed at revitalizing Nigeria’s oil and gas industry.
The statement outlined these “groundbreaking concessions,” which include the Value Added Tax (VAT) Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil and Gas Production, in accordance with the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
The VAT Modification Order 2024 provides exemptions on several key energy products and infrastructure, such as 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 reduce the cost of living, strengthen energy security, and accelerate Nigeria’s shift towards cleaner energy sources, the statement added.
Additionally, the Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs for deep offshore projects, with the goal of positioning Nigeria’s deep offshore basin as a top global destination for oil and gas investments.
The statement emphasized that these reforms are part of a broader series of investment-focused policies championed by President Bola Ahmed Tinubu, in line with Policy Directives 40-42.
“These initiatives reflect the administration’s firm commitment to promoting sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.”
With these bold measures, the statement concluded, Nigeria is on course to regain its leadership position in the global oil and gas market. The fiscal incentives underscore the government’s dedication to fostering sustainable growth, ensuring energy security, and driving economic prosperity for all Nigerians.
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