President Bola Ahmed Tinubu has approved a six-month waiver of the 7.5 per cent Value Added Tax (VAT) on Automotive Gas Oil, commonly known as diesel.
This pivotal decision was announced by Mohammed Idris, the Minister of Information and National Orientation, following a high-stakes meeting between the federal government and organized labor on Sunday.
This development couldn’t come at a more crucial time, as the cost of diesel has skyrocketed in recent months, surging from an earlier rate of 600 naira per liter in June to a staggering 1000 naira per liter.
With diesel being a lifeline for various sectors of the economy, including transportation and manufacturing, this move is poised to provide much-needed relief to both consumers and businesses grappling with soaring fuel expenses.
Minister Idris emphasized that the federal government is also committed to bolstering micro and small-scale enterprises, recognizing their importance in driving economic growth and job creation.
Furthermore, the government has pledged to extend the VAT waiver on diesel for the next six months, offering a measure of stability to businesses affected by fluctuating fuel prices.
This announcement is a direct result of resolutions from an emergency meeting between the federal government and organized labor, undertaken in an effort to avert the looming October 3 indefinite strike.