The President Bola Tinubu-led federal government has announced the exemption of 63 items from value-added tax (VAT) as part of its latest fiscal reforms.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated this in a post on X (previously Twitter) on Friday.
The exemptions are described in the official ‘Value Added Tax (Modification) Order, 2024,’ issued September 3, 2024.
The news comes after the recent implementation of fiscal concessions targeted at revitalising Nigeria’s oil and gas sector, as revealed by Finance Minister and Coordinating Minister of the Economy Wale Edun.
The Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024 includes two important incentives: a VAT modification order and tax breaks for deep offshore oil and gas production.
Furthermore, the official gazette states that the laws relating to Automotive Gas Oil (AGO) are retroactive, taking effect on October 1, 2023.
Tinubu is said to be considering prohibiting revenue-generating agencies from collecting revenues on behalf of the Federal Government in favour of establishing a single agency—the Nigeria Revenue Service—to undertake the task.
This happened as the federal government implemented a comprehensive package of new tax measures aimed at dramatically increasing revenue collection.
In September 2024, the FEC passed economic stabilisation laws and proposed ten modifications to promote economic growth.
Here is a full list of the items exempt from VAT:
*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 Vehicle
*Electric Vehicle Battery
*Electric Vehicle Charging System
*Electric Vehicle Solar Charging System
*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 machine
*Heat Treatment Equipment
*Liquid Level Guage
*Pumping Housing and Motors
*Regulator Body
*Pressure GuageTruck Chassis
*Metering and Measuring Equipment (including weighbridges and 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 Cyrogenic Hose Tubes, pipes, and hoses, and fittings thereof (for example, joints, elbows, flanges) of plastics.
*CNG truck headsGas Leak Detectors
*Gas air conditioners
*Cylinder refurbishment equipment
*Blending skid/unit
*Odourizing unit
*Chromatography unit (GC)
*LNG Liquefying Equipment, Heat Exchangers, LNG
*Vapourizers, Regasification
*Plant, liquefied CNG compression terminals
*LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters),
*Weighing Machines, Valves Equipment
*Cyrogenic Storage Tanks, Liquid 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 Digester
*Biogas Compressor
*De-sulphurization units
*Dryer
*Distillation columns for processing biofuels
*Bio-ethanol refinery equipment
*Fermentation Tanks
*Biofuel-related Chemicals, Enzymes, and Reagents
*Liquefied Petroleum Gas
*Compressed Natural Gas
*Feed Gas
*Automotive gas oil
