Nigeria's VAT Removal on EVs and Tax Reliefs for Oil Sector Announced
Nigeria is removing Value Added Tax on Electric Vehicles and introducing tax reliefs for offshore oil projects to enhance energy security and attract investment. This strategy aims to alleviate the cost of living and stimulate the transition to cleaner energy sources, while addressing a decade of low investment in the oil and gas sector.
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President Bola Ahmed Tinubu has approved the removal of Value Added Tax on Electric Vehicles and various gas products, including Compressed Natural Gas and Liquefied Petroleum Gas. The Nigerian government is also implementing tax reliefs for deep offshore oil projects to stimulate investment in the oil and gas sector.
These measures are part of a broader strategy to reduce living costs and support the country's shift toward cleaner energy. The Dangote Petroleum Refinery has agreed to supply 60 million litres of petrol weekly to the Independent Petroleum Marketers Association of Nigeria, which is expected to impact market prices positively by increasing competition. However, concerns remain regarding crude supply stability and ongoing reliance on imports despite deregulation efforts.
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