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The Nigerian government has introduced new tax breaks aimed at encouraging investment in deep sea oil and gas production.
The initiative also includes the elimination of Value Added Tax (VAT) on imports of essential energy products and infrastructure such as diesel, feed gas, liquefied petroleum gas (LPG), compressed natural gas (CNG), electric vehicles, and liquefied natural gas. Included. Gas (LNG) infrastructure and clean cooking equipment.
Minister of Finance and Coordinating Minister for the Economy Wale Edun announced these developments in a statement on Wednesday. The timing coincides with the upcoming sale plans from ExxonMobil and Seplat, which President Bola Tinubu has indicated will be subject to ministerial approval soon.
Mr. Edun’s statement highlighted two important financial initiatives – the VAT Amendment Order 2024 and notification of tax incentives for deep offshore oil and gas production – and the government’s commitment to revitalize the country’s upstream and downstream sectors. He emphasized his efforts.
“The 2024 VAT Change Order exempts a range of critical energy products and infrastructure. These measures will reduce the cost of living, strengthen energy security and support Nigeria’s drive towards cleaner energy solutions. The aim is to facilitate the transition,” Edun said.
The notification on tax incentives for deep offshore oil and gas production is aimed at positioning Nigeria’s deep ocean basin as a leading destination for global investment in the sector. The ministry stressed that these financial incentives demonstrate the administration’s dedication to sustainable growth, improved energy security and economic prosperity for all Nigerians.
These reforms are part of President Tinubu’s broader investment-driven policy framework and reflect his administration’s commitment to strengthening Nigeria’s global competitiveness in oil and gas production.
The statement concluded that these efforts are critical to regaining Nigeria’s position as a leader in the global oil and gas market.
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