Library / Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.
Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.
Page 1 of 29
FEDERAL MINISTRY OF FINANCE Baga Office of the Honourable Minister of Finance and Coordinating Minister of the Economy et Ahmadu Bello Way, Central Business District, P.M.B. 14 Garki, Abuja Nigeria. OHMF/IG/OG/2024/ 23" April 2024 IMPLEMENTATION GUIDELINES FOR THE THE OIL AND GAS COMPANIES (TAX INCENTIVES, EXEMPTION, REMISSION, ETC.) ORDER, 2024. 1.0 Introduction In line with His Excellency, President Bola Ahmed Tinubu's commitment to improving the investment climate in Nigeria, harnessing the nation’s resources, and diversifying the economy for the benefit of all Nigerians, the President has initiated the amendment ‘of primary legislation to introduce fiscal incentives for oil and gas projects. Recognizing the urgency to accelerate investments, the President issued the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024. This order grants several incentives including: a. Gas tax credit and Gas tax allowances for Non-Associated Gas greenfield developments in onshore and shallow water locations, where the hydrocarbon liquids fall between 0-100 barrels per million standard cubic feet of gas. b. A 25 percent gas utilization investment allowance applicable to qualifying expenditure on plant and equipment incurred by a gas utilization company in respect of any new and ongoing project in the midstream oil and gas industry. (Collectively referred to as the Fiscal Incentives) 2.0 Legal Framework These guidelines are issued pursuant to Paragraph 12 of the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024. 3.0 Application These guidelines shall apply to: a. Companies with licenses or leases producing Non-Associated Gas from greenfield onshore and shallow water locations. www.finance.gov.ng
RegulationsPDF20242024-041