Nigeria introduces tax reliefs for deep offshore oil and gas production, aiming to boost investments and promote cleaner energy transition.

[dropcap]T[/dropcap]he Nigerian government introduces tax reliefs for deep offshore oil and gas production to boost investments and enhance energy security.

The Federal Government of Nigeria has announced new tax reliefs for deep offshore oil and gas production to attract investments and strengthen the sector.

Also read: Nigeria’s oil exploration drops 22% in August 2024

In addition, key energy products and infrastructure, including diesel, feed gas, electric vehicles, and clean cooking equipment, will now be exempt from value-added tax (VAT).

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, unveiled these measures, highlighting Nigeria’s goal of becoming a global leader in oil and gas investments.

These fiscal incentives are part of broader policy initiatives aimed at fostering sustainable growth, bolstering energy security, and accelerating the transition to cleaner energy sources.

This announcement comes as global oil companies like ExxonMobil and Seplat plan divestments, which have been approved by President Bola Tinubu.

The government’s commitment to lowering the cost of energy products and infrastructure is designed to position Nigeria as a premier destination for oil and gas investments while securing the nation’s energy future.

The VAT Modification Order 2024 exempts critical energy imports from VAT payments, reducing the cost of living and driving Nigeria’s cleaner energy transition.

The deep offshore tax reliefs also align with Policy Directives 40-42, reflecting Nigeria’s commitment to reclaiming its leadership in global oil and gas production.