No More VAT On Diesel And Cooking Gas – FG

Wale EdunThe Federal Government has come out to announce the provision of new tax reliefs for deep offshore oil and gas production to boost investments in the sector.

The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun recently had his say via a press statement, and Nigerians have been reacting.

According to him, this new initiative would position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments, bolster energy security, and fasten the country’s transition to cleaner energy sources.

He added that these reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu.

It read, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalizing the industry.

This is just as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today unveiled two major fiscal incentives aimed at revitalising Nigeria’s oil and gas sector: Value Added Tax 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.

The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas 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.

These reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu, in line with Policy Directives 40-42.

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.

With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.

These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.”