Nigeria – Federal Government Exempts 63 Items from VAT to Boost the Economic Sector

By Utebor Paul, Nigeria

The Federal Government has announced the exemption of 63 items from Value Added Tax (VAT) in a bid to stimulate growth in key sectors of the economy.

This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a statement posted on X (formerly Twitter) on Friday.

Oyedele referenced the “Value Added Tax (Modification) Order, 2024,” dated September 3, 2024, which lists a wide range of items now exempt from VAT.

This move comes as part of the government’s ongoing fiscal reforms aimed at revitalizing the economy, following recent concessions in the oil and gas sector, as earlier highlighted by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.

Among the exempted items are key equipment and components related to the gas, automotive, and renewable energy sectors.

The VAT exemption also extends to household items such as gas water heaters, gas boilers, and gas-powered washing machines and dryers.

Additionally, components like steel pipes, storage tanks, gas leak detectors, and compressors used in the gas and LNG industries are now VAT-exempt.

Other items include: 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 Vehicles; Electric Vehicles Battery and Electric Vehicles.

Others are: 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.

The lost also made up of 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) and Gas water heaters.

Other items are 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; Odorizing unit; Chromatography unit (GC) and LNG Liquefying Equipment.

The government also announced 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 used for Liquefied Natural Gas processing; Electrical Equipment, as part of items mentioned.

The remaining items mentioned include Cables for Liquefied Natural Gas processing; Steel Plates, Angles, and Bars for Liquefied Natural Gas Processing; LNG Related Chemicals; Biogas Digester; Biogas Compressor; De-sulphuration 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.