Lagos, Oct. 8, 2023: Mr Clement Isong, the Chief Executive Officer of the Major Oil Marketers Association of Nigeria (MOMAN), has commended the Federal Government\u2019s decision to remove Value Added Tax (VAT) on diesel for a period of six months.<\/p>\n\n\n\n
Mr Clement Isong, the Chief Executive Officer of MOMAN gave the commendation on Saturday in Lagos and said the move was a step towards reducing the effect of subsidy removal on the Nigerian economy.<\/p>\n\n\n\n
President Bola Tinubu on Oct. 1 suspended collection of Value Added Tax (VAT) on diesel for six months, beginning from October.<\/p>\n\n\n\n
According to him, VAT is a consumer tax, and diesel is a fully deregulated product whose price is determined by market dynamics.<\/p>\n\n\n\n
Isong said that removal of VAT on diesel would directly reduce the price for consumers by the rate of 7.5 per cent.<\/p>\n\n\n\n
He also noted that MOMAN was in supports of the government\u2019s efforts to alleviate the hardships caused by the removal of subsidies on petrol.<\/p>\n\n\n\n
In addition to the suspension of VAT on diesel, the government is also providing high-capacity Compressed Natural Gas (CNG) buses and promoting the conversion of vehicles to CNG.<\/p>\n\n\n\n
He said that this aligns with the government\u2019s goal of promoting alternative and cheaper fuels, reducing reliance on petrol, and addressing the escalating energy costs.<\/p>\n\n\n\n
\u201cThe measures outlined, such as the suspension of VAT on diesel and the provision of high-capacity CNG buses, are some of the steps taken in the right direction to alleviate some of the burdens on consumers and the industry,\u201d Isong added.<\/p>\n\n\n\n
On CNG conversion, the MOMAN boss said that the idea of free conversion of vehicles to Compressed Natural Gas (CNG) at the startup phase of the initiative was a positive development.<\/p>\n\n\n\n
\u201cHowever, we have a preference for new vehicles with factory-fitted CNG options for quality assurance and safety reasons as well as easier maintenance.<\/p>\n\n\n\n
\u201cWhere conversion kits are to be utilised, we emphasise the need to ensure technical accountability, particularly for safety reasons.<\/p>\n\n\n\n
\u201cMOMAN supports initiatives that encourage the adoption of cleaner and more affordable energy sources,\u201d he said.<\/p>\n\n\n\n
Isong, who is also the executive secretary of MOMAN, said that the previous subsidy arrangement had adverse effects on the Nigerian economy.<\/p>\n\n\n\n
He said that the method of subsidy was untargeted, expensive, and unsustainable, particularly since the country was, in effect, subsidising the West African sub-region.<\/p>\n\n\n\n
He said that the government had an opportunity to intervene on a short-term basis to manage escalating energy costs at a time when it was unusually high.<\/p>\n\n\n\n
According to him, this is being done by many other countries around the world.<\/p>\n\n\n\n
Isong said that MOMAN supports these short-term interventions, adding that provided they were targeted, affordable, well thought out, time-bound, and not negatively impact the Nigerian economy in the long term.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"
Lagos, Oct. 8, 2023: Mr Clement Isong, the Chief Executive Officer of the Major Oil Marketers Association of Nigeria (MOMAN), has commended the Federal Government\u2019s decision to remove Value Added Tax (VAT) on diesel for a period of six months. Mr Clement Isong, the Chief Executive Officer of MOMAN gave the commendation on Saturday in […]<\/p>\n","protected":false},"author":2,"featured_media":14081,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[949,908],"tags":[1307,375],"class_list":["post-53378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-oil-gas","tag-diesel","tag-vat","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n