The Nigerian Government has announced the removal of the Value-Added Tax on Liquefied Petroleum Gas (cooking gas), Compressed Natural Gas, Automotive Gas Oil(Diesel), amongst other reliefs in a bid to increase investment and fight economic hardship in the country.
It was also announced that VAT was removed for the importation of vital energy products and infrastructure, including diesel, feed gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, announced this in a statement on Wednesday.
What They’re Saying
The statement which was signed by the Director of Information and Public Relations, Mohammed Manga revealed that the initiative was to lower rising living costs and expedite Nigeria’s transition to cleaner energy.
“The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas 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,” Edun said.
He further explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects, laying emphasis that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
This development is coming as majority of Nigerians lament the exorbitant cost of living in the country, caused by high inflation which stood at 32.15 percent in August 2024.
