To encourage investment and address the nation’s economic difficulties, the federal government has announced the abolition of the value-added tax on compressed natural gas, automotive gas oil (diesel), liquefied petroleum gas (cooking gas), and other reliefs.
Additionally, it announced the removal of VAT on the import of infrastructure and essential energy items, such as clean cooking appliances, fuel, feed gas, electric cars, and liquefied natural gas infrastructure.
This was disclosed in a statement released on Wednesday by Wale Edun, the Coordinating Minister of the Economy and the Minister of Finance.
According to the announcement, which was signed by Mohammed Manga, Director of Information and Public Relations, the program aims to speed Nigeria’s shift to greener energy sources while also lowering rising living expenses.
“A number of essential energy items and infrastructure are exempted under the VAT Modification Order 2024, including compressed natural gas, diesel, feed gas, liquefied petroleum gas, electric vehicles, and clean kitchen appliances.
“These policies aim to enhance energy security, reduce living expenses, and hasten Nigeria’s shift to greener energy sources,” he stated.
He emphasized that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments,” as he described how the notice of tax incentives for deep offshore oil & gas production offers new tax reliefs for deep offshore projects.
This occurs at a time when most Nigerians are complaining about their country’s rising cost of living due to excessive inflation, which stood at 32.15 percent in August 2024.
