The Federal Government has eliminated VAT on essential energy products like diesel and cooking gas, bringing relief across Nigeria. Mohammed Manga, Director of Information at the Ministry of Finance, announced the decision on Wednesday. This move aims to boost the oil and gas sector while reducing living costs for Nigerians.
During a press briefing, Finance Minister Wale Edun announced two key fiscal incentives to revitalize Nigeria’s oil and gas sector. The 2024 VAT Modification Order introduces exemptions for diesel, cooking gas, and other critical energy products. These include Feed Gas, LPG, CNG, electric vehicles, 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,” Manga explained. He highlighted that this initiative not only benefits consumers but also aligns with global efforts to shift towards more sustainable energy practices.
The government is also introducing new tax reliefs for deep offshore oil and gas production. This aims to position Nigeria’s deep offshore basin as a top destination for global oil and gas investments. This strategic move aims to attract foreign investment and enhance the country’s standing in the international energy market.
President Bola Ahmed Tinubu launched these reforms as part of a series of investment-driven policies aligned with Policy Directives 40-42. The administration is committed to fostering sustainable growth in the energy sector. These fiscal incentives represent a major step in boosting Nigeria’s global competitiveness in oil and gas production.
With the removal of VAT on key energy products, the Nigerian government is taking bold steps to ensure that citizens experience immediate relief from rising energy costs. This initiative reflects the administration’s dedication to driving economic prosperity and energy security for all Nigerians. As the country moves forward, many are optimistic that these reforms will help reclaim Nigeria’s position as a leader in the global oil and gas market.
