The Federal Government (FG) has unveiled two major fiscal incentives in its effort to boost Nigeria’s oil and gas sector.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun unveiled the incentives on Wednesday.
The new incentives are 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, Exemption, Remission, etc.) Order 2024.
According to a statement issued by the Ministry of Finance, the VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure.
These include 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, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources,” the statement read.
“In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
The Ministry of Finance said the VAT reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu in line with Policy Directives 40-42.
It said 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.
