FG removes VAT on cooking gas, diesel, CNG The federal government reveals it has introduced concessions aimed at revitalising the oil and gas industry to ensure a boost in Nigeria’s upstream and downstream sectors.
Wale Edun, minister of finance and forming minister of the economy, unveiled two major fiscal incentives on Wednesday.
According to a statement by Mohammed Manga, director, information and public relations at the ministry of finance, the incentives are aimed at revitalising Nigeria’s oil and gas sector.
The spokesperson stated they comprise value-added tax (VAT) modification ordain 2024 and notice of tax incentives for deep offshore oil and gas production, in accordance with the Oil and 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,” Manga said.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
He revealed the notice of tax incentives for deep offshore oil and gas production provides forward-looking tax reliefs for deep offshore projects.
“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments,” Manga said.
“These reforms are part of a broader series of investment-driven policy initiatives championed by His Excellency, President Bola Ahmed Tinubu, in line with Policy Directives 40-42.
“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and sharpening Nigeria’s global competitiveness in oil and gas production.”
With these adventurous initiatives, he disclosed Nigeria is solidly on track to reclaim its position as a leader in the global oil and gas market.
The fiscal incentives, according to the ministry’s spokesperson, demonstrate the administration’s unwavering commitment to fostering sustainable growth, rising energy security, and fostering economic prosperity for all Nigerians.
Category: World-News
Tag: FG removes VAT on cooking gas diesel CNG
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Published 10/3/2024