The federal government has introduced tax reliefs for deep offshore oil and gas projects in the country as well as VAT exclusion on LPG, CNG, diesel and others.
The Ministry of Finance disclosed this via its official handle on X stating that the fiscal incentives were aimed at boosting investments in the oil and gas sector.
The orders from the Ministry are titled; Value Added Tax (VAT) 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 exempts key energy products like Diesel, LPG, CNG, and clean energy infrastructure, such as electric vehicles and clean cooking equipment, from VAT.
According to the Ministry, these exemptions aim to reduce living costs, improve energy security, and support Nigeria’s shift to cleaner energy.
The Notice of Tax Incentives for Deep Offshore Oil & Gas Production introduces new tax reliefs to attract global investments to Nigeria’s deep offshore projects.
The statement from the Ministry noted that the tax reliefs are Part of President Bola Ahmed Tinubu’s broader policy reforms and measures which aim to boost the energy sector and strengthen Nigeria’s global competitiveness in oil and gas.
What the Federal government is saying “The Honourable Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun has unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector:”
- Value Added Tax (VAT) Modification Order 2024
- ”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 (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) 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.”
