The federal government has unveiled a set of fiscal incentives and concessions designed to bolster operations in the nation’s upstream and downstream sectors of the economy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who unveiled the two major fiscal incentives, yesterday, said they were part of overall measures to revitalise Nigeria’s oil and gas sector: The fiscal incentives included Value Added Tax (VAT) Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
A statement issued by the Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga, explained that 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.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
