The Federal Government of Nigeria has announced value-added tax (VAT) exemptions on several energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, in an effort to reduce costs for consumers and promote energy security.
This was revealed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in a statement issued on Wednesday.
The VAT exemption is part of the newly introduced VAT Modification Order 2024, which seeks to lower the cost of living and support Nigeria’s transition to cleaner energy.
The VAT exemptions will apply to a variety of energy products and infrastructure, such as feed gas, Liquefied Petroleum Gas (LPG), CNG, LNG infrastructure, and clean cooking equipment.
The initiative is expected to alleviate some of the financial pressures on Nigerians while promoting the use of more sustainable energy sources.
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