ARTICLE · 21 SEPTEMBER 2018

Value Added Tax Modification Order For The Power Sector

Deloitte Nigeria

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Federal Government of Nigeria (FGN) is poised to change the face of VAT in the power sector with the Value Added Tax (VAT) (Modification) Order 2018 (the Order) ...

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Deloitte Nigeria

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Federal Government of Nigeria (FGN) is poised to change the face of VAT in the power sector with the Value Added Tax (VAT) (Modification) Order 2018 (the Order), which seeks to provide clarity on the applicability of VAT for operators in the Nigeria Electricity Supply Industry (NESI).

The Order is dated 1 March 2018; however, it is uncertain if the gazette has been issued, thereby casting doubt on its efficacy. Nonetheless, the Order as it currently reads, applies to generating companies (GenCos), transmission companies (TransCos) and distribution companies (DisCos); representing major levels of the electricity value chain. It also applies to Nigeria Bulk Electricity Trading Plc (NBET), a 100% government-owned company which buys electricity from the GenCos and resells to the DisCos / final consumers.

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