The Federal Government has exempted various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, from Value Added Tax (VAT) under new economic measures.
Minister of Finance, Wale Edun, stated on Wednesday that the VAT exemption aims to reduce living costs, strengthen energy security, and support Nigeria’s shift to cleaner energy sources. The VAT Modification Order 2024 covers diesel, feed gas, LPG, CNG, electric vehicles, LNG infrastructure, and clean cooking equipment.
Edun also unveiled tax incentives for deep offshore oil and gas projects under the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024. These initiatives are designed to attract global investment and enhance Nigeria’s competitiveness in the oil and gas sector.
“These reforms align with President Bola Tinubu’s policy directives, reflecting the administration’s commitment to sustainable growth and positioning Nigeria as a leading energy hub,” Edun said.
