The Federal Government of Nigeria has exempted 63 items from Value-Added Tax (VAT) as part of its latest fiscal reforms. This development was revealed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a post on X (formerly Twitter) on Friday.

The exemptions are listed in the official “Value Added Tax (Modification) Order, 2024,” dated September 3, 2024.

This announcement follows recent fiscal concessions aimed at revitalising Nigeria’s oil and gas sector.

The measures were disclosed by Wale Edun, the Finance Minister and Coordinating Minister of the Economy, as part of the government’s drive to stimulate economic growth. Two key incentives were highlighted: the VAT modification order and tax reliefs for deep offshore oil and gas production, under the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.

The government gazette also specifies that provisions concerning Automotive Gas Oil (AGO) are retroactive, taking effect from October 1, 2023.

Earlier reports suggested that President Bola Tinubu is considering barring revenue-generating agencies from collecting funds on behalf of the Federal Government. This would be part of a plan to introduce a single agency, the Nigeria Revenue Service (NRS), to handle revenue collection.

The move aligns with a broader set of fresh tax reforms aimed at significantly increasing the country’s revenue.

In September 2024, the Federal Executive Council (FEC) approved economic stabilisation bills that include 10 proposed changes aimed at spurring economic growth.

Below is the full list of the 63 items exempted 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 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 Gauges
– Pumping Housing and Motors
– Regulator Bodies
– Pressure Gauges
– Truck 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 wash and dry
– CNG, LPG and Cryogenic Hoses
– Tubes, pipes, hoses, and fittings thereof (e.g. 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 Plants, Liquefied CNG Compression Terminals
– LNG Plants, 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
– Desulphurization Units
– Dryers
– 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