In the face of the rising cost of living, the Lagos Chamber of Commerce and Industry (LCCI) has said the federal government’s decision to introduce incentives in the oil and gas sector will lower the operational costs for industries, reduce the overall cost of living for Nigerians, and increase access to clean energy.
Recall that on October 2, the federal government said it had introduced incentives, including value-added tax (VAT) modification order 2024 and notice of tax incentives for deep offshore oil and gas production.
LCCI’s director-general (DG), Chinyere Almona, in a statement on Saturday, stated that the incentives would rejig the oil and gas sector.
“Implementing the Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production are significant fiscal incentives that can revitalize Nigeria’s oil and gas sector,” Almona said.
Almona noted that the high cost of diesel has heaped an excessive burden on the manufacturing sector, logistics, and transportation for an extended period of time, pointing out that cooking gas was made less affordable by VAT impositions.
“This policy shift will undoubtedly lower the operational costs for industries, reduce the overall cost of living for Nigerians, and increase home access to clean energy,” Almona said.
“The successful transition to CNG mobility definitely requires all the possible incentives to speed up the deployment. The tax reliefs for deep offshore oil and gas production could boost oil and gas sector investments.
“The business community is upbeat about the government’s efforts towards transitioning to Compressed Natural Gas (CNG) as an alternative fuel for mobility.”
