The Federal Government of Nigeria has announced the exemption of 63 specific items from Value-Added Tax (VAT) as part of broader fiscal reforms aimed at stimulating the economy.
This announcement was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, through a statement on X (formerly Twitter).
The exemption list, part of the “Value Added Tax (Modification) Order, 2024,” took effect from October 1, 2023, and is intended to ease financial burdens on businesses and consumers while promoting economic activities, especially in the oil and gas sectors.
Here is the full list of exempted items:
1. CNG/LPG Dual Fuel Vehicles
2. Dedicated LPG Vehicles
3. Parts and semi-knocked down units (for assembly) of CNG and LPG buses
4. Parts and semi-knocked down units (for assembly) of Electric Vehicles
5. Electric Vehicles
6. Electric Vehicle Batteries
7. Electric Vehicle Charging Systems
8. Electric Vehicle Solar Charging Systems
9. LPG/CNG Conversion Kits
10. CNG Cylinders
11. CNG Cascades
12. CNG Dispensers
13. Gas Generators
14. CNG Trucks (Bobtails, Bridgers, fixed axle, and semi-trailers)
15. Steel Pipes
16. Steel Valves & Fittings
17. SS Tubes & Fittings
18. Storage Tanks (all sizes)
19. Regulators
20. CNG Pumps and Compressors (all types)
21. Steel
22. Pressure Relief Valves
23. Hydraulic Press/Rolling Machines
24. Heat Treatment Equipment
25. Liquid Level Gauges
26. Pumping Housing and Motors
27. Regulator Bodies
28. Pressure Gauges
29. Truck Chassis
30. Metering and Measuring Equipment (including weighbridges and filling scales)
31. Dispensing Equipment (dispensing scales, nozzles, gas filling systems)
32. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick-release couplings)
33. Gas Water Heaters
34. Gas Burners for Industry
35. Gas Boilers
36. Gas Washing Machines and Dryers (launderettes and household or laundry-type washing machines, including machines that wash and dry)
37. CNG, LPG, and Cryogenic Hoses, Tubes, Pipes, and Hose Fittings (e.g., joints, elbows, flanges) made of plastic
38. CNG Truck Heads
39. Gas Leak Detectors
40. Gas Air Conditioners
41. Cylinder Refurbishment Equipment
42. Blending Skid/Unit
43. Odourizing Unit
44. Chromatography Unit (GC)
45. LNG Liquefying Equipment, Heat Exchangers, LNG Vaporizers, and Regasification
46. Plant, Liquefied CNG Compression Terminals
47. LNG Plant, Machinery, Pumps, Compressors, Filters (including gas filters)
48. Weighing Machines, Valves Equipment
49. Cryogenic Storage Tanks, Liquefied CNG Conversion Tanks
50. Pipes, Piping Fittings, and Flanges used for Liquefied Natural Gas Processing
51. Electrical Equipment, including Cables for Liquefied Natural Gas Processing
52. Steel Plates, Angles, and Bars for Liquefied Natural Gas Processing
53. LNG Related Chemicals
54. Biogas Digesters
55. Biogas Compressors
56. De-sulphurization Units
57. Dryers
58. Distillation Columns for Processing Biofuels
59. Bio-ethanol Refinery Equipment
60. Fermentation Tanks
61. Biofuel-related Chemicals, Enzymes, and Reagents
62. Liquefied Petroleum Gas (LPG)
63. Compressed Natural Gas (CNG)
64. Feed Gas
65. Automotive Gas Oil
This exemption list is part of the government’s effort to support the growth of industries, particularly in energy, while fostering innovation and reducing operational costs for businesses involved in clean and sustainable technologies.