The Nigerian government has exempted 63 items from Value-Added Tax (VAT) as part of its ongoing fiscal policy reforms aimed at energising key sectors.
This was announced by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, via a post on X (formerly Twitter). The specifics are contained in the official gazette titled the ‘Value Added Tax (Modification) Order, 2024,’ dated September 3, 2024.
This move comes on the heels of fiscal concessions unveiled by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. These reforms, designed to bolster Nigeria’s upstream and downstream oil and gas operations, include VAT exemptions and tax incentives for deep offshore oil production.
One key element is the retroactive application of VAT provisions for Automotive Gas Oil (AGO), effective from October 1, 2023.
Full List of VAT-Exempt Items:
- CNG/LPG Dual Fuel Vehicles
- Dedicated LPG Vehicles
- 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 and Fittings
- SS Tubes and Fittings
- Storage Tanks (all sizes)
- Regulators
- CNG Pumps and Compressors (all types)
- Steel
- Pressure Relief Valves
- Hydraulic Press/Rolling Machine
- 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 which both wash and dry)
- CNG, LPG, and Cryogenic Hoses
- Tubes, pipes, and hoses, and fittings thereof (for example, joints, elbows, flanges) of plastics
- CNG Truck Heads
- Gas Leak Detectors
- Gas Air Conditioners
- Cylinder Refurbishment Equipment
- Blending Skid/Unit
- Odourising Unit
- Chromatography Unit (GC)
- LNG Liquefying Equipment
- LNG Heat Exchangers
- LNG Vapourisers
- Regasification Plant
- Liquefied CNG Compression Terminals
- LNG Plant Machinery
- LNG Pumps
- LNG Compressors
- LNG 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 LNG processing)
- Steel Plates, Angles, and Bars for LNG processing
This exemption covers a wide range of energy-related equipment, vehicles, and parts, highlighting the government’s drive to support Nigeria’s energy transition and sustainability goals.