In a bid to revitalize Nigeria’s oil and gas sector and attract foreign investment, the Federal Government has announced a set of new fiscal incentives.
These measures were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in a statement released on Wednesday.
According to the statement, signed by the Director of Information and Public Relations, Mohammed Manga, the incentives are aimed at improving the nation’s energy security, lowering the cost of living, and supporting Nigeria’s transition to cleaner energy sources.
Key highlights include the Value Added Tax (VAT) Modification Order 2024, which exempts the importation of critical energy products and infrastructure from VAT. This includes diesel, feed gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, and clean cooking equipment. The government emphasized that these changes would reduce energy costs and position Nigeria as a competitive destination for global oil and gas investments.
Additionally, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production introduces new tax reliefs for deep offshore projects. The Ministry stated that this initiative is designed to strengthen Nigeria’s position as a leading player in the global oil and gas industry. “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments,” the statement noted.
These reforms come amid divestment plans by oil giants ExxonMobil and Seplat, which are expected to receive ministerial approval soon. The statement underscored that these policy changes are part of a broader strategy led by President Bola Tinubu to promote sustainable growth and drive economic prosperity across Nigeria.
“These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians,” the Ministry concluded.
