FULL LIST: 63 energy items excluded from VAT in new order from Ministry of Finance

The Federal Government has recently introduced VAT exemptions for a range of energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, as part of efforts to lower prices. 

Finance Minister Wale Edun stated that these steps are aimed at reducing the cost of living, boosting energy security, and accelerating Nigeria’s shift towards cleaner energy sources. 

As outlined in an official Gazette from the Ministry of Finance titled; VALUE ADDED TAX (MODIFICATION) ORDER, 2024, 63 items are now excluded from VAT collection by the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS), and other relevant agencies. 

According to the official Gazette, the exclusion of VAT from Automotive Gas Oil (AGO) also called diesel would become effective from October 1, 2024, while other items would be implemented by the relevant agency with approval from the Minister of Finance.  

The VAT rate in Nigeria is 7.5% according to 2020 and excludes businesses with less than N25 million turnover in one year.  

The 69 items are;  

1. CNG/LPG Dual Fuel Vehicles  
2. Dedicated LPG Vehicles and CNG/LPG Dual Fuel 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 Vehicles Battery 
7. Electric Vehicles Charging System 
8. Electric Vehicle Solar Charging System 
9. LPG/CNG Conversion Kits 
10. CNG Cylinders. 
11. CNG Cascades 
12. CNG Dispensers 
13. Gas Generators 
14. CNG Trucks (Bobtails and 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 machine  
24. Heat Treatment Equipment  
25. Liquid Level Guage  
26. Pumping Housing and Motors  
27. Regulator Body  
28. Pressure Guage  
29. Truck Chassis 
30. Metering and Measuring Equipment (including weighbridges, 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) Household or laundry-type washing machines, including machines which both wash and dry. 
37. CNG, LPG and Cyrogenic Tubes, pipes and hoses, and fittings thereof (for example joints, elbows, flanges) of plastics. 
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 Vapourizers, Regassification Plant, Liquefied CNG, Compression Terminals.  
46. LNG Plant, Machinery, Pumps, Compressors, Filters (Including Gas Filters), Weighing Machines, Valves & Equipment.  
47. Cyrogenic Storage Tanks, Liquefied CNG Conversion tanks  
48. Pipes, Piping Fittings, Flanges used for Liquefied Natural Gas processing 
49. Electrical Equipment, including Cables for Liquefied Natural Gas processing 
50. Stell Plates, Angles, Bars for Liquefied Natural Gas Processing 
51. LNG Related Chemicals  
52. Biogas Digester  
53. Biogas Compressor  
54. De-sulphurization units 
55. Dryer  
56. Distillation columns for processing biofuels  
57. Bio-ethanol refinery equipment  
58. Fermentation Tanks  
59. Biofuel related Chemicals, Enzymes and Reagents 
60. Liquefied Petroleum Gas  
61. Compressed Natural Gas  
62. Feed Gas  
63. Automotive gas oil