By Habeeb Ibrahim
The Federal Government has removed Value Added Tax (VAT) on key energy products, including diesel, cooking gas, and others, in a move aimed at reducing the cost of living and boosting energy security in Nigeria.
This policy shift, announced by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, introduces two significant fiscal incentives designed to support the oil and gas sector and accelerate the country’s transition to cleaner energy sources.
The VAT exemptions, under the Value Added Tax Modification Order 2024, cover essential energy items such as diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, and clean cooking equipment, providing much-needed relief to consumers while promoting broader energy access.
Moreover, the Notice of Tax Incentives for Deep Offshore Oil and Gas Production offers tax breaks for deep offshore oil projects, aiming to attract global investments and position Nigeria as a leader in the oil and gas industry.
These measures form part of the Tinubu administration’s broader economic strategy, focused on fostering sustainable growth, improving Nigeria’s global competitiveness, and securing a transition to cleaner energy sources.
