The Federal Government has announced new tax reliefs aimed at boosting investments in deep offshore oil and gas production. It has also exempted key energy products, including diesel, cooking gas, and clean energy equipment, from value-added tax (VAT).
This announcement, made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was detailed in a statement released on Wednesday.
The statement, signed by Director of Information and Public Relations, Mohammed Manga, highlights the government’s efforts to position Nigeria’s deep offshore oil sector as a leading global destination for investment while promoting energy security and cleaner energy alternatives.
As part of the new VAT exemptions under the Value Added Tax Modification Order 2024, products like diesel, feed gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, Liquefied Natural Gas (LNG) infrastructure, and clean cooking equipment will no longer require VAT payments. These exemptions are designed to reduce living costs, strengthen energy security, and facilitate Nigeria’s transition to cleaner energy sources.
Additionally, the Notice of Tax Incentives for Deep Offshore Oil & Gas Productionintroduces new tax breaks for deep offshore projects, aimed at attracting global oil and gas investments to Nigeria.
“These measures reflect the administration’s strong commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians,” the statement concluded.
The reforms come alongside divestment plans from ExxonMobil and Seplat, which President Bola Tinubu said would receive ministerial approval soon.
These initiatives are part of a broader series of policy reforms under the president’s directive to revive the oil and gas sector, bolster Nigeria’s global competitiveness, and restore the country’s status as a key player in the global energy market.
