The Federal Government of Nigeria has announced exemptions from value-added tax (VAT) for various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles.

The announcement, made by Finance Minister Wale Edun, includes the introduction of the VAT Modification Order 2024, which aims to lower living costs, enhance energy security, and facilitate Nigeria’s transition to cleaner energy sources.

In addition to the VAT exemptions, the government also unveiled a Notice of Tax Incentives for Deep Offshore Oil & Gas Production, providing new tax reliefs for deep offshore projects, positioning Nigeria as a prime destination for global oil and gas investments.

These reforms are part of a broader initiative led by President Bola Ahmed Tinubu to drive investment and sustainable growth in Nigeria’s energy sector.