The Federal Government of Nigeria is set to crash the prices of cooking gas and diesel following the provision of new tax reliefs for deep offshore oil and gas production in Nigeria.
This was revealed by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, on Wednesday.
The Minister said the importation 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 would no longer require value-added tax payment.
Edun stated that new tax reliefs is to boost investment in the deep offshore oil and gas production in Nigeria.
This was contained in a statement signed by the Director of Information and Public Relations, Mohammed Manga. He said the initiative would position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments. And will also bolster energy security and accelerate Nigeria’s transition to cleaner energy sources.
He noted that this policy directive arrives alongside new divestment plans from ExxonMobil and Seplat. Which President Bola Tinubu said would receive ministerial approval in the coming days.
The statement read, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalizing the industry.
“This is just as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, today unveiled two major fiscal incentives. Which are aimed at revitalizing Nigeria’s oil and gas sector. These are the Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production. The incentives are in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.”
Manga added that, “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure. These include diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas and electric vehicles. And also, 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.”
It explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects. Emphasizing therefore, that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
The Minister said these fiscal incentives reflect the administration’s steadfast commitment to promoting sustainable growth. And also enhancing energy security, and driving economic prosperity for all Nigerians.
“These reforms are part of a broader series of investment-driven policy initiatives championed by 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.
“With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.
“These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth. Enhancing energy security and driving economic prosperity for all Nigerians,” the statement concluded.
source: Punch
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