The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has disclosed that the Federal Government has introduced a range of fiscal incentives intended to strengthen operations in both the oil and gas sectors of the economy.
The Tax exemptions include Value Added Tax (VAT) Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemptions, Remission, etc.) Order 2024.
A statement issued by the Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga stated that the VAT Modification Order 2024 exempts essential energy products, including diesel, feed gas, liquefied petroleum gas (LPG), compressed natural gas (CNG), and clean energy infrastructure like electric vehicles and clean cooking equipment, from VAT. These exemptions aim to lower the cost of living, strengthen energy security, and speed up Nigeria’s transition to cleaner energy sources.
Additionally, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production introduces new tax reliefs for deep offshore projects. This initiative seeks to establish Nigeria’s deep offshore basin as a leading destination for global oil and gas investments.
According to a statement by the ministry “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”. “With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market. These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.”
