The Federal Government of Nigeria has revealed it’s establishment of new tax reliefs measures for deep offshore oil and gas production to boost investments in the sector.
It also unveiled that the importation of key energy products and infrastructure which includes diesel, feed gas, clean cooking equipment Liquefied ,Petroleum Gas, Compressed Natural Gas, electric vehicles and Liquefied Natural Gas infrastructure would no longer be of importance.
This regulatory directive was introduced together with the new divestment plans from ExxonMobil and Seplat in which President Bola Tinubu said would receive ministerial approval in the nearest future.
According to the statement made, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalizing the industry.
“This is just as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today unveiled two major fiscal incentives aimed at revitalising Nigeria’s oil and gas sector: Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.”
The Director Of Information and Public Relations of the Ministry of Finance, Mohammed Manga expatiated further that the VAT modification order has brought about the exclusion of some key energy products.
“The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.” He added
The ministry however explained that these fiscal incentives reveals the administration’s dedication to promoting sustainable growth and development enhancing energy security, and increasing economic productivity for all Nigerians.
“These reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu, in line with Policy Directives 40-42.” It also added.
In Conclusion, it stressed that these bold initiatives established reflects that Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.