The federal government also reiterated its commitment to provide funds for micro and small-scale enterprises.
Nigeria's President Bola Ahmed Tinubu has suspended 7.5per cent value added tax on diesel.
The suspension will take place for a period of six months.
Mohammed Idris, the Minister of Information and National Orientation disclosed this on Sunday after a meeting between the federal government and the organized labour.
The development comes amid the rising cost of diesel, which jumped from 600/per litre in earlier June to N1000/ per litre.
"The Federal Government also committed to providing funds for micro and small-scale enterprises and waivers on VAT on diesel for the next six months,” Idris said.
Recall that the announcement comes as part of resolutions from an emergency meeting between the federal government and the organized labour to halt the planned October 3 indefinite strike.
The federal government also reiterated its commitment to provide funds for micro and small-scale enterprises.