The federal government has declared that it will waive the value-added tax on the purchase of compressed natural gas (CNG) buses and will be pursuing duty waivers for value-chain transactions.
The chairman of the presidential CNG initiative steering committee, Zacch Adedeji, made the announcement on Friday at the State House Bouquet Hall in Abuja.
“As your Chief Tax Officer, a position I hold alongside my role as Chairman of this initiative, I am pleased to announce that we will be waiving the Value Added Tax on CNG purchases and seeking duty waivers for value-chain transactions. The goal is to build a sustainable future by leveraging our own cheap and clean energy source: gas,” Mr Adedeji said.
Mr Adedeji, who is also the chairman of the Federal Inland Revenue Service, was represented by Farouk Ahmed, the chief executive officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
During the event held to hand over CNG buses to State House staff, Mr Adedeji also disclosed that the country currently has seven conversion centres in Nigeria and added that the government is actively working to establish more of them. He revealed that the project plans will not only include the conversion of vehicles but also the creation of employment opportunities.
He stated that the initiative demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.
“This project is not only about the conversion of vehicles but also about generating employment opportunities. It exemplifies President Bola Tinubu’s dedication to both environmental sustainability and economic growth.
The presidential compressed natural gas initiative was launched by Mr Tinubu in August with the goal of converting 55,000 current PMS-dependent vehicles to CNG and over 11,500 new CNG-enabled vehicles.