FG argued that the initiative will lower rising living costs and accelerate Nigeria’s transition to cleaner energy
By Kehinde Okeowo
The Federal Government has responded to the prevailing economic hardship in the country by removing Value-Added Tax (VAT) on Liquefied Petroleum Gas (cooking gas), Compressed Natural Gas (CNG) and Automotive Gas Oil (AGO) otherwise called Diesel.
This was made known on Wednesday by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, via a statement signed by his ministry’s Director of Information and Public Relations, Mohammed Manga.
The minister also announced VAT reliefs for the importation of key energy products and infrastructure, including diesel, feed gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
FG believes the initiative will lower rising living costs and accelerate Nigeria’s transition to cleaner energy.
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The statement read, “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
Edun further explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects, stressing that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
The development comes as the majority of Nigerians lament the rising cost of living in the country, occasioned by high inflation which stood at 32.15 percent in August 2024.