The Federal Government of Nigeria has officially exempted 63 items from Value-Added Tax (VAT) as part of broader fiscal reforms aimed at stimulating key sectors of the economy. The announcement was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, referencing the ‘Value Added Tax (Modification) Order, 2024.’ The new exemptions, effective from October 1, 2023, are part of ongoing efforts to reduce financial burdens on businesses and consumers while boosting economic activity.
The exempted items include:
- CNG/LPG Dual Fuel Vehicles
- Dedicated LPG Vehicles
- CNG/LPG Dual Fuel Vehicles Parts
- Semi-knocked down units (for assembly) of CNG and LPG buses
- Electric Vehicles Parts
- Semi-knocked down units (for assembly) of Electric Vehicles
- Electric Vehicles
- Electric Vehicles Battery
- Electric Vehicles 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 Materials
- 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 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)
- CNG, LPG, and Cryogenic Hoses
- Tubes, Pipes, and Hoses, and Fittings (such as joints, elbows, flanges) of plastics
- CNG Truck Heads
- Gas Leak Detectors
- Gas Air Conditioners
- Cylinder Refurbishment Equipment
- Blending Skid/Unit
- Odourizing 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 for LNG Processing
- Electrical Equipment, including Cables for LNG Processing
- Steel Plates, Angles, and Bars for LNG Processing
- LNG Related Chemicals
- Biogas Digester
- Biogas Compressor
- Liquefied Petroleum Gas, Compressed Natural Gas, Feed Gas, Automotive Gas Oil
These exemptions are expected to provide relief and encourage growth in Nigeria’s oil and gas, biofuel, and renewable energy sectors.
