The Nigerian Federal Government has shown sheer determination to ensure a boost in the nation’s upstream and downstream sectors. Through the Ministry of Finance, the Federal Government has introduced groundbreaking concessions to revitalize Nigeria’s oil and gas industry.
According to the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun the two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector as unveiled by the current administration of President Tinubu are the Value Added Tax (VAT) Modification Order 2024
and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, by the Oil & 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. These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources,” Mr. Edun stated.
Further, on the above economic reform, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production is expected to provide new tax reliefs for deep offshore projects. It will invariably aim to position 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 posited.
With these bold initiatives, Nigeria is firmly on track to reclaim its global oil and gas market leader position. These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
