Nigeria’s Federal Government has introduced groundbreaking tax reliefs to revitalize the oil and gas sector, positioning the country’s deep offshore basin as a premier investment destination.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the initiative, which includes exemptions from value-added tax (VAT) payments for key energy products and infrastructure.
*Key Exemptions*
– Diesel
– Feed gas
– Liquefied Petroleum Gas
– Compressed Natural Gas
– Electric vehicles
– Liquefied Natural Gas infrastructure
– Clean cooking equipment
According to Mohammed Manga, Director of Information and Public Relations, these measures aim to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources. The Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects, aligning with the administration’s commitment to sustainable growth and energy security.
Nigeria’s energy sector is ripe for investment, with opportunities emerging in clean energy, renewable energy, and energy efficiency ² ³. The National Renewable Energy and Energy Efficiency Policy (NREEEP) aims to diversify Nigeria’s energy mix and provide affordable access to electricity. With President Bola Tinubu’s support, Nigeria is poised to reclaim its leadership in the global oil and gas market.
These reforms are part of Policy Directives 40-42, championed by President Tinubu to foster sustainable growth in the energy sector and enhance Nigeria’s global competitiveness ¹. The Federal Government’s commitment to promoting sustainable growth and energy security is expected to drive economic prosperity for all Nigerians.
