Gas economy: FG declares taxes waiver, others for companies involved in gas pipeline construction — Minister
By Matthew Denis
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo has disclosed that the Federal Government has outlined special incentives to boost gas production in large quantities to meet the demands of Nigerians.
The Minister in a speech at the 8th edition of the Sub Saharan Africa International Petroleum Exhibition and Conference held in Lagos said the incentives includes include 3-year tax waivers for Companies that build and operate gas pipelines, and could be extended to five years at the satisfaction of the Ministry of Petroleum Resources, and recently Mr. President approved the zero duty and VAT for imported CNG and LNG. This is in addition to the existing tax waivers on imported Gas equipment.
He noted that all these are geared towards deepening gas penetration in Nigeria.
He said, “This event is significant for the energy sector especially at a period when energy transition and security is at the top of our minds. Let me start by expressing my deepest appreciation to the organizers of this conference for continuously promoting ideas and collaboration among African oil and gas players.
“In Nigeria, gas is not just a transition fuel but it is strategic to achieving a more secured energy future and as a catalyst for other national development goals.”
According to him, the Ministry of Petroleum Resources has identified finance and Investment in infrasructure as critical to the deelopment of the Gas sector.
“As part of the tools to addrss this problem, the Midstrem and Downstream Gas nfrastructure Fund was put in place to enable the Governmnt make equity investent in Gas Infrastructure.
“As e gather to harness ideas o develop our energy sector, let us not forget the variou incentives put in place by te Government to encouage the Gas Sector development.
“These include 3-year tax waivers for Companies that build and operate gas pipelines, and could be extended to 5 years at the satisfaction of the Ministry of Petroleum Resources.”
He revealed Mr. President approved the zero duty and VAT for imported CNG and LNG. This is in addition to the existing tax waivers on imported Gas equipment. All these are geared towards deepening gas penetration in Nigeria.
“The responsibility of developing our energy resources does not depend on the Government alone. It calls for collaboration, knowledge sharing, and commitment on the part of the private sector industry players too as the Government makes the right policies and creates the enabling environment for businesses to thrive.
“As we anticipate the kick-start of critical infrastructure such as the AKK, and the expansion of the Lagos-Escravos pipeline to Morocco and further to Europe, we call for collaboration to support existing Government initiatives. There is a huge demand for Gas in Nigeria, and the sector is large enough to accommodate everyone.”
He stressed that the Ministry of Petroleum Resources welcomes ideas and ventures that could help bridge the gap existing between demand for gas and the low level of development of our enormous natural gas reserves.
“I hereby reiterate the readiness of the Government and the Ministry of Petroleum Resources, in particular, to foster fruitful collaborations and partnerships that will aid achievement of the national goals for domestic gas utilization and export.”
