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Hardship: Nigerian govt removes VAT on cooking gas, CNG, diesel



The Federal Government has announced the removal of the Value-Added Tax on Liquefied Petroleum Gas (cooking gas), Compressed Natural Gas, Automotive Gas Oil(Diesel) and other reliefs to boost investment and tackle economic hardship in the country.

 

It 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.

 

The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, announced this in a statement on Wednesday.

 

The statement signed by the Director of Information and Public Relations, Mohammed Manga said the initiative is to lower rising living costs and accelerate Nigeria’s transition to cleaner energy.

 

“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,” he said.

 

He 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.

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