The Federal Government has announced value-added tax (VAT) exemptions on several key energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, in an effort to reduce prices and enhance energy security, Okay.ng reports.
This was revealed in a statement on Wednesday by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. The exemptions are part of broader measures aimed at easing the cost of living and accelerating Nigeria’s transition to cleaner energy sources.
“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,” the statement read.
Edun emphasized that the initiative is also designed to drive Nigeria’s shift to cleaner energy sources while lowering the financial burden on citizens.
In addition to VAT exemptions, the Minister also announced tax incentives for deep offshore oil operations and gas production through the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024. These incentives are expected to position Nigeria’s deep offshore basin as a leading 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,” Edun added.
“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.”
