FG Exempts Diesel, Cooking Gas, CNG from VAT to Ease Costs
The Federal Government has announced the removal of Value Added Tax (VAT) on several key energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles. This move is aimed at reducing living costs, enhancing energy security, and speeding up Nigeria’s transition to cleaner energy sources.
In a statement on Wednesday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the VAT Modification Order 2024 introduces exemptions on diesel, LPG, CNG, LNG infrastructure, electric vehicles, and clean cooking equipment.
“These tax reforms will lower costs for consumers, strengthen energy security, and support Nigeria’s shift to cleaner energy,” Edun said.
The Minister also revealed new tax incentives for deep offshore oil and gas projects under the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024, positioning Nigeria’s deep offshore basin as a leading investment hub.
“These initiatives reflect President Bola Tinubu’s policy drive to stimulate growth and global competitiveness in the energy sector,” Edun added.
