FG Eliminates Diesel and Cooking Gas Value Added Tax.
The federal government claims to have stopped charging value-added tax (VAT) on fuel used for cooking, diesel, and other oil and gas-related products.
The decision is intended to revive Nigeria’s oil and gas industry and increase investor confidence, according to a statement from Mohammed Manga, director of communications and public affairs at the Ministry of Finance
The notice aims to reduce living expenses, enhance energy stability, and expedite Nigeria’s shift to sustainable energy sources,” the statement stated. “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.”
According to him, additional tax breaks for deep offshore projects are offered by the notification of tax benefits for deep offshore oil and gas production.
“This initiative is 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 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 enhancing Nigeria’s global competitiveness in oil and gas production.”
He claimed that Nigeria is well-positioned to take back the top spot in the world oil and gas market with these audacious actions.
