The federal government has introduced new fiscal incentives aimed at revitalizing Nigeria’s oil and gas industry, focusing on boosting both upstream and downstream operations. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announced the incentives on Wednesday.
In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the measures include the VAT Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil and Gas Production, introduced under the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
The VAT Modification Order 2024 offers exemptions on 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 aim to reduce the cost of living, bolster energy security, and accelerate the transition to cleaner energy sources in Nigeria.
The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs for deep offshore projects, aiming to position Nigeria’s deep offshore basin as a leading destination for global oil and gas investments.
These initiatives are part of a broader set of investment-driven policy reforms championed by President Bola Ahmed Tinubu, aimed at fostering sustainable growth in the energy sector and strengthening Nigeria’s global competitiveness in oil and gas production.
With these bold reforms, Nigeria is poised to reclaim its position as a leader in the global oil and gas market, while enhancing energy security and economic prosperity for all citizens.
