The federal government has announced new concessions aimed at revitalizing the oil and gas industry, with a focus on boosting Nigeria’s upstream and downstream sectors.
Wale Edun, the minister of finance and coordinating minister of the economy, revealed two major fiscal incentives on Wednesday.
According to a statement by Mohammed Manga, director of information and public relations at the ministry of finance, the incentives are designed to revitalize Nigeria’s oil and gas sector.
Manga explained that these incentives include the “value-added tax (VAT) modification order 2024” and the “notice of tax incentives for deep offshore oil and gas production,” both issued under the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.
“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,” Manga said.
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.”
Manga also mentioned that the “notice of tax incentives for deep offshore oil and gas production” introduces new tax reliefs for deep offshore projects.
“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments,” Manga stated.
These reforms, according to Manga, are part of a broader series of policy initiatives driven 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,” Manga added.
With these initiatives, he said Nigeria is on course to reclaim its position as a global leader in the oil and gas market.
The fiscal incentives underscore the administration’s dedication to promoting sustainable growth, improving energy security, and ensuring economic prosperity for all Nigerians.
