The Nigerian Federal Government has announced the exemption of 63 items from Value-Added Tax (VAT). This was revealed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a post on X (formerly Twitter) on Friday.
According to Oyedele, these exemptions are part of the official “Value Added Tax (Modification) Order, 2024,” published in a gazette dated September 3, 2024.
This development follows a recent announcement by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy. Edun had introduced a series of fiscal concessions aimed at boosting the country’s oil and gas industry, especially its upstream and downstream sectors.
The new measures include two significant fiscal incentives: the VAT modification order for 2024 and a notice of tax incentives for deep offshore oil and gas production, aligned with the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024. These initiatives are designed to revitalize Nigeria’s energy sector and stimulate economic growth.
This move signals a broader effort by the government to streamline taxes and encourage investment across critical industries.
Gas washing machines and dryers (launderettes) Household or laundry-type washing machines, including machines which both wash and dry.
CNG, LPG and Cryogenic Hoses Tubes, pipes and hoses, and fittings thereof (for example,joints, elbows, flanges) of plastics.
- CNG truck heads
- Gas Leak Detectors
- Gas air conditioners
- Cylinder refurbishment equipment
- Blending skid/unit
- Odourizing unit
- Chromatography unit (GC)
- LNG Liquefying Equipment, Heat Exchangers, LNG Vapourizers, Regasification Plant, Liquefied CNG Compression Terminals
- LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves Equipment
- Cryogenic Storage Tanks, Liquefied CNG Conversion tanks
- Pipes, Piping Fittings, and Flanges used for Liquefied Natural Gas processing
- Electrical Equipment, including Cables for Liquefied Natural Gas processing
- Steel Plates, Angles, and Bars for Liquefied Natural Gas Processing
- LNG Related Chemicals
- Biogas Digester
- Biogas Compressor
- De-sulphurization units
- Dryer
- Distillation columns for processing biofuels
- Bio-ethanol refinery equipment
- Fermentation Tanks
- Biofuel-related Chemicals, Enzymes and Reagents
- Liquefied Petroleum Gas
- Compressed Natural Gas
- Feed Gas
- Automotive gas oil
