AFRICA: Nigerian Government Unveils Tax Reliefs to Revitalize Nigeria’s Oil and Gas Sector

The Nigerian Government has introduced new tax relief measures aimed at boosting investments in deep offshore oil and gas production.

This initiative also includes the removal of value-added tax (VAT) on the importation of 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.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced these developments in a statement on Wednesday. The timing coincides with upcoming divestment plans from ExxonMobil and Seplat, which President Bola Tinubu has indicated will receive ministerial approval shortly.

Edun’s statement emphasized the government’s commitment to revitalizing the nation’s upstream and downstream sectors, highlighting two significant fiscal initiatives: the Value Added Tax Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production.

“The VAT Modification Order 2024 provides exemptions on a range of critical energy products and infrastructure. These measures are designed to reduce living costs, enhance energy security, and facilitate Nigeria’s shift towards cleaner energy solutions,” said Edun.

The Notice of Tax Incentives for deep offshore oil and gas production aims to position Nigeria’s deep offshore basin as a premier destination for global investments in the sector. The ministry underscored that these fiscal incentives demonstrate the administration’s dedication to sustainable growth, improved energy security, and economic prosperity for all Nigerians.

These reforms are part of a broader investment-driven policy framework championed by President Tinubu, reflecting the administration’s commitment to enhancing Nigeria’s global competitiveness in oil and gas production.

The statement concluded that these initiatives are pivotal in reclaiming Nigeria’s status as a leader in the global oil and gas market.

11 April 2025

US: SEC publishes disclosure guidance for crypto issuers

Yesterday the US Securities and Exchange Commission (SEC) published guidance on the application of disclosure requirements to crypto-asset securities issuances. It acknowledged that this is an interim

Read More
14 February 2025

SPAIN: Spanish Tax Agency Intensifies Action Against Tax Evasion

New measures target self-employed individuals prepared to go underground financially.The Spanish Tax Agency (Agencia Tributaria) is ramping up its fight against tax evasion, positioning itself as the

Read More
13 August 2024

GREEN FINANCE: New report highlights innovative approach to finance for Commonwealth SIDS

Today, the Commonwealth Secretariat and Cambridge University’s Centre for Resilience and Sustainable Development (CRSD) unveiled the final report for “Their Future, Our Action and the COMPASS

Read More
28 February 2025

FATF: FinCEN announces FATF watchlist update: Laos, Nepal added, Philippines removed

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced two countries have been added to the Financial Action Task Force (FATF) watchlist, while another has been removed.

Read More