FG Announces Tax Incentives To Attract Investments In Oil, Gas Sector
By Sunday Etuka, Abuja
The Federal Government has unveiled two major fiscal incentives to attract investments in the oil and gas sector of the nation’s economy.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who announced this on Wednesday, said the fiscal incentives were aimed at revitalizing the sector.
The Director, Information and Public Relations of the Ministry of Finance, Mohammed Manga disclosed that incentives were introduced under: Value Added Tax (VAT) 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.
According to him, the VAT Modification Order 2024 introduces exemptions on a range of 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.
He said, these measures were designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
Manga said, in addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
This initiative, according to him, is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.
The Director said, the reforms were part of a broader series of investment-driven policy initiatives championed by His Excellency, President Bola Tinubu, in line with Policy Directives 40-42.
“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production”, Manga said.
He said, with these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.
The fiscal incentives, he noted , demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
