The Federal Government has introduced new tax relief measures to boost investments in Nigeria’s oil and gas sector, particularly in deep offshore production. Among the key initiatives is the removal of Value-Added Tax (VAT) on the importation of essential energy products and infrastructure, including diesel, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, and clean cooking equipment.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made the announcement on Wednesday in a statement signed by the Director of Information and Public Relations, Mohammed Manga. The move is aimed at positioning Nigeria as a leading destination for global oil and gas investments while enhancing the country’s energy security and promoting a transition to cleaner energy sources.
The statement explained that the **VAT Modification Order 2024** and the **Notice of Tax Incentives for Deep Offshore Oil & Gas Production** are part of these reforms. These measures will also provide new tax reliefs for deep offshore oil and gas projects to attract more investment into Nigeria’s deep offshore basin.
“This initiative is designed to lower the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources,” the statement said, adding that these reforms reflect the government’s commitment to sustainable growth and economic prosperity.
The announcement comes at a time when major oil companies like ExxonMobil and Seplat have outlined new divestment plans, with President Bola Tinubu stating that ministerial approval for these deals would be granted soon.
The government’s latest policies, which align with President Tinubu’s **Policy Directives 40-42**, aim to reestablish Nigeria’s position as a key player in the global oil and gas industry while fostering growth in the energy sector and improving the country’s global competitiveness.
