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Home In the News

FG Halts VAT on Diesel and Cooking Gas, Introduces Tax Reliefs for Oil and Gas Sector

Ademola Damilola by Ademola Damilola
October 3, 2024
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FG Halts VAT on Diesel and Cooking Gas, Introduces Tax Reliefs for Oil and Gas Sector
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In a statement signed by the Director of Information and Public Relations, Mohammed Manga, the government highlighted that the VAT exemptions apply to products such as diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, Liquefied Natural Gas (LNG) infrastructure, and clean cooking equipment. The goal is to reduce the cost of living, boost energy security, and support Nigeria’s transition to more sustainable energy sources.

Additionally, the government unveiled new tax relief measures specifically for deep offshore oil and gas projects. These incentives are designed to position Nigeria’s deep offshore basin as a top destination for global oil and gas investments, especially amid divestment plans from ExxonMobil and Seplat, which are set to receive ministerial approval soon.

“These measures reflect the administration’s commitment to promoting sustainable growth and improving Nigeria’s competitiveness in the global oil and gas market,” the statement read. The policy is part of President Bola Tinubu’s investment-driven initiatives, which aim to enhance Nigeria’s energy security and drive economic prosperity.

The reforms are expected to stimulate growth in both the upstream and downstream sectors, reinforcing Nigeria’s standing as a leader in the global oil and gas industry.

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