The Federal Government has introduced two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector and boosting foreign investment. The incentives were announced on Wednesday by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, as part of ongoing efforts to enhance the sector’s competitiveness on the global stage.
According to a statement issued by the Ministry of Finance, signed by the Director of Information and Public Relations, Mohammed Manga, the new measures are designed to bolster energy security, promote investment, and support Nigeria’s transition to cleaner energy sources.
One of the key initiatives includes a Value Added Tax (VAT) exemption on essential energy products and infrastructure, such as diesel, feed gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicles, Liquefied Natural Gas (LNG) infrastructure, and clean cooking equipment.
Manga stated that the VAT exemptions would significantly lower the cost of living and make Nigeria’s deep offshore basin a premier destination for global oil and gas investment.
“This is a significant step toward enhancing energy security and supporting Nigeria’s goal of transitioning to cleaner energy sources,” Manga said.
The second fiscal measure, known as the “Notice of Tax Incentives for Deep Offshore Oil & Gas Production,” introduces new tax reliefs for deep offshore projects. The initiative is expected to attract substantial investments in Nigeria’s deep offshore basin, positioning the country as a leader in the global oil and gas market.
These reforms come amid ExxonMobil and Seplat’s divestment plans, which President Bola Tinubu has said will soon receive ministerial approval. The administration’s efforts are in line with its broader policy initiatives to promote sustainable growth and economic prosperity, as outlined in the Policy Directives 40-42.
The government emphasized that these initiatives demonstrate its strong commitment to driving economic progress while ensuring energy security for all Nigerians.
