FG Removes VAT on Diesel for Six Months, Says Gas-Powered Buses Coming Soon

FG Removes VAT on Diesel for Six Months, Says Gas-Powered Buses Coming Soon

  • The Nigerian government said it will remove VAT on diesel for six months as part of its plans to reduce petrol subsidy removal pains
  • The government also said it will provide gas-powered buses as part of its transportation plans
  • The deal is part of its agreement with labour unions who are planning to embark on strike from October 3, 2023

As part of measures to ease the impact of subsidy removal on Nigerians, the Nigerian government says it will waive the Value Added Tax (VAT) on diesel for the next six months.

The waiver is part of the deal reached between the government and the Nigerian Labour Congress (NLC) leadership and the Trade Union Congress (TUC) at the end of the meeting held at the State House on Sunday, October 1, 2023.

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VAT, Diesel, Tinubu, NLC
President Bola Tinubu promises to provide gas-powered vehicles and remove VAT on diesel Credit: KOLA SULAIMON
Source: Getty Images

FG promises to review VAT on diesel

At the end of the four-hour meeting with the labour leaders, Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, said the government and the labour leaders had reached some agreements.

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According to a statement issued by Mohammed Idris, Minister of Information and National Orientation, the Nigerian government is committed to fast-tracking the provision of compressed natural gas (CNG) buses to ease public transportation caused by the removal of subsidies on petrol.

TheCable reports that Idris revealed that the government would make funds available for micro and small-scale enterprises, adding that VAT on diesel will be waived for the next six months.

FG says it will transfer N25,000 to 15 million poor households for three months

He stated the Nigerian government will begin the payment of N75,000 to 15 million households at N25,000 monthly for three months from October to December 2023.

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N35k wage, N25k monthly for 15m households: List of Tinubu's palliatives after subsidy removal

He said the government would constitute a committee to work out the details of the implementation of all items for consideration regarding subsidy removal.

The minister urged the labour unions to consider the offers and concessions made by the government and shelve the planned strike.

The President of NLC, Joe Ajaro, said the labour unions would take all the promises made by the government to its executive council for deliberation.

He said the labour unions would consider all the promises by the government and translate them to its members.

"We're Ready": Tinubu approves alternative fuel as experts raise concerns over cost

Legit.ng reported that some oil and gas industry experts have expressed worry that converting vehicles to Compressed Natural Gas (CNG) may be unaffordable for Nigerians.

The experts expressed their worries in separate interviews where they said the government might have to subsidize the cost of having Nigerians embrace the CNG as an alternative to petrol.

While commending the government for the plan as part of measures to reduce the effect of the fuel subsidy removal, they also raised issues over the competence and capacity of those who will be engaged for the job.

Source: Legit.ng

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