NIGERIA: Tinubu Administration Introduces New VAT Despite Economic Hardships

By: Chioma Madonna Ndukwu

In a move to alleviate the economic hardships faced by citizens, the Federal Government of Nigeria has announced significant tax relief measures. The removal of Value-Added Tax (VAT) on key energy products, including Liquefied Petroleum Gas (LPG), Compressed Natural Gas, and diesel, is aimed at lowering living costs.

Finance Minister Wale Edun stated, “These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.” The initiative also introduces VAT exemptions for the importation of vital energy infrastructure and clean cooking equipment.

Edun highlighted that this is part of a broader strategy to make Nigeria’s deep offshore oil and gas sector more attractive to global investments, asserting that the tax incentives would “position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”

This announcement comes in response to rising inflation, which hit 32.15% in August 2024, as many Nigerians express growing concern over their increasing cost of living.

Source: Ibom Focus.

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Chioma Ndukwu

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