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.

4 October 2024

FINTECH: Binance warns of crypto market risks from overvaluation, centralization

The cryptocurrency market faces significant risks due to overvaluation and the centralization of token ownership, according to a recent report from Binance. The report warns that if these challenges

Read More
5 March 2024

INVESTMENT: Bermuda and UAE Strengthen Economic Ties

At the recent Investopia conference held in Abu Dhabi, United Arab Emirates, Bermuda’s Minister of Economy and Labour, the Hon. Jason Hayward, took significant steps to promote Bermuda as a leading

Read More
20 January 2024

Carey Olsen acts for Wentworth Resources plc in £61.7 million takeover by scheme of arrangement

Press Release from: Carey Olsen, Wednesday 17 January, 2024.  Lawyers from Carey Olsen’s corporate team have acted as Jersey counsel for long standing client, Wentworth Resources plc (“Wentworth”),

Read More
29 January 2024

GUERNSEY: Guernsey-based Funds Channel Additional £13 billion into UK Economy

Press Release from Guernsey Finance, Monday 29 January, 2024.  The contribution that Guernsey’s finance sector makes to the UK economy has been highlighted in research conducted by Frontier Economics

Read More