High living cost: FG removes VAT on diesel, cooking gas, electric cars, others
The Federal Government has exempted a range of various energy products, including diesel, Liquefied Natural Gas (LNG), also known as cooking gas, Compressed Natural Gas (CNG), and electric vehicles, among others from value added tax (VAT).
The announcement was made by Mohammed Manga, Director, Information and Public Relations in Federal Ministry of Finance via a statement on Wednesday.
He said the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun on unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector on Wednesday.
According to him, “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.”
He added that “these measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources”.
In addition, he said the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
Managa stated that this initiative aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
These reforms are part of a broader series of investment-driven policy initiatives championed by 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 enhancing Nigeria’s global competitiveness in oil and gas production.
He said with these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market, adding that these fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
