FG Grants Tax Exemptions to Oil & Gas Sector to Lower Prices

To address the wave of divestments in Nigeria’s oil and gas sector, the Federal Government has introduced a new fiscal framework offering extensive tax exemptions.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, announced that the fiscal incentives are designed to rejuvenate the oil and gas industry.

tax exemptions are outlined in the ‘Value Added Tax (VAT) Modification Order 2024’ and the ‘Notice of Tax Incentives for Deep Offshore Oil & Gas Production,’ both in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.

EDITOR’S PICKS

• Health, Planning Ministries Partner with AfDB on Sustainable System Project
• Shamim Ahmed: Student Ally of Bangladesh’s Ex-Prime Minister Loses Life
• Match Words With Actions -Lawyers Urge New CJN, Kekere-Ekun

The VAT Modification Order 2024 provides exemptions on critical 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.

Additionally, the tax incentives for deep offshore oil and gas projects offer further reliefs to promote investment in this area.

Minister Edun emphasized that these incentives aim to attract substantial new investments and revitalize the industry, while also reducing living costs, strengthening energy security, and speeding up Nigeria’s transition to cleaner energy sources.

FURTHER READING 

• BREAKING: FG Begins New Minimum Wage Payments For Workers
• Mallorca Fan Sentenced To Prison For Racist Abuse Of Vinicius Junior, Chukwueze
• Benin Republic Arrests 3 Men Suspected Of Coup Plot

He expressed confidence that these reforms will reposition Nigeria’s deep offshore basin as a leading destination for global oil and gas investments.

The measures are part of a broader set of investment-driven initiatives under President Bola Tinubu’s Policy Directives 40-42, aimed at promoting sustainable growth in the energy sector and boosting Nigeria’s global competitiveness in oil and gas production.

“These bold initiatives will ensure Nigeria reclaims its leadership in the global oil and gas market,” Edun stated, adding that the fiscal incentives demonstrate the government’s commitment to sustainable growth, energy security, and economic prosperity for all Nigerians.

Click here to watch our video of the week: