The Federal Government has announced the exemption of 63 key items from Value-Added Tax (VAT) as part of its sweeping fiscal reforms aimed at boosting the economy and driving Nigeria’s energy transition.
The announcement was made by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, via a post on X (formerly Twitter) on Friday. The exemptions are outlined in the official ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.
This move follows a series of recent fiscal incentives, including the VAT modification order and tax reliefs for deep offshore oil and gas production, introduced by Finance Minister and Coordinating Minister of the Economy, Wale Edun.
The reforms are part of the government’s broader strategy to revitalize Nigeria’s oil and gas sector while driving economic growth.
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Notably, the VAT exemptions cover a wide range of energy and manufacturing products, including electric vehicles, compressed natural gas (CNG), liquefied petroleum gas (LPG) infrastructure, clean cooking equipment, and various components used in renewable energy production.
Among the notable items exempted are CNG/LPG dual fuel vehicles, electric vehicle charging systems, gas generators, storage tanks, steel pipes, gas leak detectors, biogas digesters, and compressed natural gas.
These measures aim to lower the cost of living, improve energy security, and support Nigeria’s shift to cleaner energy sources, positioning the country as a leader in the global energy market.
The announcement is part of a broader set of tax reforms approved in September 2024 by the Federal Executive Council (FEC), as Nigeria continues its efforts to stabilize the economy and spur sustainable growth.
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