In a bid to boost Nigeria’s oil and gas sector, the Federal Government has introduced a series of tax exemptions and fiscal incentives targeted at both the upstream and downstream industries.
These measures are part of broader reforms aimed at revitalising the sector and enhancing energy security.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who unveiled two major fiscal policies on Tuesday.
According to a statement from the Director of Information and Public Relations of the Ministry, Mohammed Manga, these policies are designed to foster growth and attract global investment into the nation’s energy sector.
The first policy, known as the ‘Value Added Tax (VAT) Modification Order 2024,’ introduces tax exemptions on critical energy products and infrastructure. These include Diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, and Clean Cooking Equipment.
The government believes these exemptions will lower the cost of living and accelerate Nigeria’s shift towards cleaner energy sources.
Additionally, the government issued a ‘Notice of Tax Incentives for Deep Offshore Oil and Gas Production,’ which offers new tax reliefs aimed at encouraging investment in deep offshore projects.
This initiative is expected to position Nigeria’s deep offshore basin as a key destination for global oil and gas investments.
