The Nigerian government has announced that it has introduced concessions aimed at revitalizing the oil and gas industry to ensure the revitalization of Nigeria’s upstream and downstream sectors.
The Minister of Finance and Coordinating Minister of Economic Affairs, Wale Edun, announced two major financial incentives in Abuja, Nigeria.
The incentive is aimed at boosting Nigeria’s oil and gas sector, according to a statement by Mohamed Manga, Director of Information and Public Relations at the Ministry of Finance.
The spokesperson said this includes notification of tax incentives for deep sea oil and gas production under the Value Added Tax (VAT) Amendment Order 2024 and the Oil and Gas Companies Order 2024 (Tax Benefits, Exemptions, Exemptions etc.) He said that
“Clean your diesel, feedstock gas, liquefied petroleum gas (LPG), compressed natural gas (CNG), electric vehicles, liquefied natural gas (LNG) infrastructure, and cooking equipment in the 2024 VAT Change Order.” Manga said.
“These measures are aimed at reducing the cost of living, strengthening energy security and accelerating Nigeria’s transition to cleaner energy sources,” he added.
He said the Notification of Tax Incentives for Deepwater Oil and Gas Production will provide new tax breaks for deepwater projects.
“This initiative aims to position Nigeria’s deepwater basin as a leading destination for global oil and gas investment,” Manga said.
“These reforms are part of a broader set of investment-led policy initiatives supported by His Excellency President Bola Ahmed Tinubu, in line with Policy Directives 40-42.
“These reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and strengthening Nigeria’s global competitiveness in oil and gas production,” Manga added.
He said with these bold initiatives, Nigeria is firmly on track to regain its position as a leader in the global oil and gas market.
A spokesperson for the ministry said the financial incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, strengthening energy security and promoting economic prosperity for all Nigerians.
Olusola Akintonde
