In a significant move to revitalize the country’s oil and gas industry, and ultimately reduce cost of living, the Federal Government has unveiled new fiscal incentives designed to enhance both upstream and downstream sectors.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this in a statement on Wednesday.
Key components of the initiative include the Value Added Tax (VAT) Modification Order 2024and a Notice of Tax Incentives for Deep Offshore Oil & Gas Production.
According to the statement which was signed by his Spokesperson, Mohammed Manga, the VAT Modification Order introduces exemptions on essential energy products and infrastructure, such as diesel, liquefied petroleum gas (LPG), and electric vehicle infrastructure.
This measure aims to reduce the cost of living and support Nigeria’s transition to cleaner energy sources.
“In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides 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.
“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.
“With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market. These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians,” the statement added.
