Nigeria's fiscal reforms aim to revive oil and gas sector, boost investments, and modernize infrastructure.
The Federal Government has introduced new fiscal incentives to improve and revive Nigeria’s upstream and downstream oil and gas sectors.
These fiscal incentives are designed to stimulate growth, attract investment, restructure and modernize the energy industry for durable sustainability.
The initiatives, unveiled by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, are part of a broader effort to leverage fiscal incentives to promote sustainable growth and increase competitiveness in the global oil and gas market.
Two major fiscal incentives have been introduced to drive these reforms:
1. Value Added Tax (VAT) Modification Order 2024.
2. Notice of Tax Incentives for Deep Offshore Oil & Gas Production, aligned with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.
The VAT Modification Order 2024 provides tax exemptions on key 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.
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These exemptions, according to the Minister of Finance and Coordinating Minister of the Economy, in line with the federal government’s efforts, aim to reduce the cost of living, enhance energy security, and support Nigeria’s transition to cleaner energy sources.
Fiscal incentives boost Nigeria’s competitiveness in deep offshore oil investments.
Meanwhile, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production offers new tax reliefs for deep offshore projects.
This initiative is designed to make Nigeria’s deep offshore basin a competitive destination for global oil and gas investments.
These measures are seen as an integral unit of a broader investment-driven agenda and visions of President Bola Ahmed Tinubu under Policy Directives 40-42.
As part of the administration’s commitment to sustainable growth, this will, according to the government, improve Nigeria’s global standing in oil and gas, igniting economic progress for the nation.
The news summaries:
1. Nigerian government introduces fiscal incentives to revive oil and gas sector.
2. New tax incentives unveiled to attract offshore oil and gas investments.
3. Nigeria pushes for sustainable energy with VAT exemptions on infrastructure.
