Overview of the Value Added Tax (VAT) Modification Order, 2024 and the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, 2024: Implications for Nigeria’s Oil and Gas Industry

The President of Nigeria is empowered to exercise certain powers by virtue of clear provisions of the Nigerian Constitution (the “Constitution” as amended) and certain other pieces of legislation. Specifically, by virtue of Section 5 of the Constitution, he is empowered with executive powers and Sections 23(2) and 89 of the Companies Income Tax Act (the “CITA”, as amended) enable him to issue orders exempting any company or class of companies from paying income tax or from complying with any provision of the CITA. Consequently, President Bola Ahmed Tinubu, GCFR (the “President”), who doubles as the Minister of Petroleum Resources, issued the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024 (the “Order”).