FULL LIST: Sanitary pads, energy exports, land… items exempted from VAT in new tax law

The new Nigeria Tax Act has exempted several items from the 7.5 percent value-added tax (VAT)

The legislation is among four tax reform bills signed into law by President Bola Tinubu on June 26.

The others are the Nigeria Tax Administration Act, the Joint Revenue Board (Establishment) Law, and the Nigeria Revenue Service (Establishment) Act.

The laws are expected to take effect from January 1, 2026, under a renamed agency — the Nigeria Revenue Service (NRS).

The Nigeria Tax Act, seen by TheCable, exempts about 15 items from the VAT, subjecting an additional 19 to VAT at a zero percent rate.

Here’s a list of items that fall under the VAT exemption category.

SUPPLIES EXEMPTED FROM VAT

No.	ITEM
1	Oil and gas exports
2	Crude petroleum oil and feed gas for all processed gas
3	Goods purchased for use in humanitarian donor funded projects
4	Baby products
5	Locally manufactured sanitary towels, pads or tampons
6	Military hardware, arms, ammunitions and locally manufactured uniforms supplied to armed forces, para-military and other security agencies of a Nigerian government
7	Shared passenger road-transport service
8	Purchase, hire, rental or lease of tractors, ploughs and other equipment used for agricultural purposes.
9	Supplies consumed by an approved entity in the export processing or free trade zones, provided that the supplies are consumed on its approved activity
10	Goods or services supplied to a diplomatic mission, diplomat or person recognised under the Diplomatic Immunities and Privileges Act whose activity is in public interest, and not for profit
11	Plays and performances conducted by educational institutions as part of learning
12	Land or building including interest in land or building
13	Money or securities including interest in money or securities
14	Government licences
15	Assistive devices and disability-related products including hearing aids, wheelchairs, and braille materials

TAXABLE SUPPLIES CHARGED TO VAT AT 0%

No.	ITEM
1	Basic food items
2	All medical and pharmaceutical products including medicinal herbal products
3	Educational books and materials
4	Fertilisers
5	Locally produced agricultural chemicals
6	Locally produced veterinary medicine
7	Locally produced animal feeds
8	Live cattle, goats, sheep and poultry
9	agricultural seeds and seedlings
10	Electricity generated by generation companies (GENCOs) and supplied to national grid or Nigeria Bulk Electricity Trading Company (NBET)
11	Electricity transmitted by Transmission Company of Nigeria (TCN) to electricity distribution companies (DISCOs)
12	Medical services
13	Tuition relating to nursery, primary, secondary or tertiary education
14	Exported goods excluding oil and gas
15	Exported services
16	Exported incorporeal property
17	Medical equipment
18	Electric vehicles
19	Parts, semi-knock-down units for the assembly of electric vehicles

ADDITIONAL VAT EXEMPTIONS IN OIL, GAS SECTOR

On October 2, 2024, the federal government introduced the VAT modification order and notice of tax incentives for deep offshore oil and gas production.

The order exempted VAT collection on a range of key energy products and infrastructure, including diesel, feed gas, liquefied petroleum gas (LPG), compressed natural gas (CNG), electric vehicles, liquefied natural gas (LNG) infrastructure, and clean cooking equipment.

Two days later, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, unveiled the 63 items exempted from VAT.

According to the new tax Act, the VAT would not be collected on petroleum products, renewable energy equipment, compressed natural gas (CNG), LPG, and other gaseous hydrocarbons.

However, the law stipulated that the minister, by an order published in the official gazette, can determine when VAT collection would be suspended on the items.

“Charging and collection of VAT on the following items shall commence on the date indicated by the Minister, or suspended where it is expedient to do so in the public interest, by an order issued in the Official Gazette,” the document further stated.

According to the act, some other items may also be classified as exempt or zero-rated supplies by an order issued by the minister in the official gazette.

The listed items include equipment, components and infrastructure related to the conversion and installation or expansion of CNG and LPG, including conversion kits; and services relating to the conversion and installation of CNG and LPG.