FG Removes VAT On Cooking Gas, Diesel, Others
The federal government has announced the removal of the value-added tax (VAT) on diesel, cooking gas, and others.
Minister of Finance and Coordinating Minister of the Economy Wale Edun made this known when he announced two major fiscal incentives on Wednesday.
According to a statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, these preferential measures are aimed at revitalizing Nigeria’s oil and gas sector.
The preferential measures include the Value Added Tax (VAT) Amendment Decree 2024 and the notification of preferential treatment for deepwater oil and gas production under the Oil and Gas Companies (Preferential Treatment, Exemptions, Waivers, etc.) Decree 2024.
The statement reads: “VAT Amendment Decree 2024 introduces tax exemptions for 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. These measures are intended to lower the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources.
In addition, the Notice of Tax Incentives for Deepwater Oil and Gas Production provides new tax incentives for deepwater projects. This initiative aims to position Nigeria’s deepwater basin as a major destination for global oil and gas investment.
These reforms are part of a series of investment-driven policies advocated by President Bola Ahmed Tinubu in line with Policy Directive 40-42. They reflect the administration’s strong commitment to promoting sustainable growth in the energy sector and strengthening Nigeria’s international competitiveness in oil and gas production.”
These bold initiatives put Nigeria firmly on track to regain its position as a leader in the global oil and gas market.
These fiscal incentives demonstrate the administration’s unwavering commitment to promoting sustainable growth, enhancing energy security, and advancing economic prosperity for all Nigerians.”
