Toba Owojaiye reporting
Abuja, Nigeria
The federal government has announced the exemption of 63 essential items from Value Added Tax (VAT), marking a bold step towards promoting cleaner energy and revitalizing Nigeria’s oil and gas industry. Among the items benefiting from this VAT exemption are gas generators, CNG/LPG dual fuel vehicles, electric vehicle parts, and equipment essential for Liquefied Natural Gas (LNG) processing.
Truth Live News gathered that Taiwo Oyedele, chair of the presidential committee on fiscal policy and tax reforms, shared the update in an official gazette titled the “Value Added Tax (Modification) Order, 2024.” These provisions, effective from October 1, 2023, are designed to encourage the adoption of eco-friendly technologies, enhance gas production, and stimulate both upstream and downstream sectors of the oil and gas industry.
Here is the list in no particular order:
CNG/LPG Dual Fuel Vehicles
Dedicated LPG Vehicles and CNG/LPG Dual Fuel Vehicles
Parts and semi-knocked down units (for assembly) of CNG and LPG Buses
Parts and semi-knocked down units (for assembly) of Electric Vehicles
Electric Vehicles
Electric Vehicle Batteries
Electric Vehicle Charging Systems
Electric Vehicle Solar Charging Systems
LPG/CNG Conversion Kits
CNG Cylinders
CNG Cascades
CNG Dispensers
Gas Generators
CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers)
Steel Pipes
Steel Valves & Fittings
SS Tubes & Fittings
Storage Tanks (all sizes)
Regulators
CNG Pumps and Compressors (all types)
Steel
Pressure Relief Valves
Hydraulic Press/Rolling Machines
Heat Treatment Equipment
Liquid Level Gauge
Pumping Housing and Motors
Regulator Body
Pressure Gauge
Truck Chassis
Metering and Measuring Equipment (including weighbridges, filling scales)
Dispensing Equipment (dispensing scales, nozzles, gas filling systems)
Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
Gas Water Heaters
Gas Burners for Industry
Gas Boilers
Gas Washing Machines and Dryers (launderettes)
Household or Laundry-type Washing Machines (including machines that both wash and dry)
CNG, LPG, and Cryogenic Hoses
Tubes, Pipes, and Hoses, and Fittings (joints, elbows, flanges) of Plastics
CNG Truck Heads
Gas Leak Detectors
Gas Air Conditioners
Cylinder Refurbishment Equipment
Blending Skid/Unit
Odorizing Unit
Chromatography Unit (GC)
LNG Liquefying Equipment, Heat Exchangers, LNG Vaporizers, 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 Digesters
Biogas Compressors
De-sulfurization Units
Dryers
Distillation Columns for Processing Biofuels
Bioethanol Refinery Equipment
Fermentation Tanks
Biofuel-Related Chemicals, Enzymes, and Reagents
Liquefied Petroleum Gas
Compressed Natural Gas
Feed Gas
Automotive Gas Oil
Not only will these exemptions boost local assembly of electric vehicles and support biofuel processing, but they will also provide much-needed relief for businesses and households that rely on alternative energy sources. This move is seen as part of a broader government strategy to transition to sustainable energy while offering incentives for deep offshore oil and gas production.
Exciting times lie ahead for Nigeria’s energy sector as the country moves towards a cleaner, more sustainable future!