The Nigeria Customs Service (NCS) has unveiled a groundbreaking fiscal incentive to boost Nigeria’s gas utilisation efforts, aligning with President Bola Ahmed Tinubu GCFR’s vision to transform the nation’s investment climate. Under the Presidential Gas for Growth Initiative, the import duty rate on machinery, equipment, and spare parts for gas utilisation has been slashed to zero percent.
This exemption, anchored in Part 1, Section 5 of the Customs and Excise Tariff Act, extends to all equipment associated with Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG). By eliminating import duties, the government aims to stimulate domestic gas adoption, foster industrial growth, and position Nigeria as a leader in clean energy development.
This bold step underscores the administration’s commitment to economic growth and environmental sustainability, paving the way for increased investment in Nigeria’s energy sector.
In a further boost to Nigeria’s gas utilisation drive, the Federal Government has announced a zero percent Value Added Tax (VAT) rate on a range of critical gas-related items and services. This includes feed gas for processed gas, Compressed Natural Gas (CNG), imported Liquefied Petroleum Gas (LPG), and components for CNG and LPG equipment. Also covered are conversion kits, installation services, and all infrastructure supporting the expansion of CNG, LPG, and the Presidential CNG Initiative.
To access these incentives, importers must secure an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy.
This initiative is a key pillar of the Presidential Gas for Growth Initiative, reflecting the government’s commitment to fostering clean energy adoption, reducing costs for investors, and accelerating the transition to a gas-powered economy.
In a decisive move to promote clean energy and ease the financial burden on citizens, the Nigeria Customs Service (NCS) has announced a comprehensive exemption from Import Duty and Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) imported under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00.
As part of this policy, the NCS will withdraw all Debit Notes issued to petroleum marketers who imported LPG using these codes from August 26, 2019, to date, ensuring retroactive compliance with previous government approvals.
These measures are designed to lower energy costs, enhance energy security, and fast-track Nigeria’s transition to cleaner, more sustainable energy sources. Comptroller General of Customs Bashir Adewale Adeniyi MFR has reaffirmed the NCS’s commitment to implementing these incentives effectively and called on stakeholders to adhere to the new regulations promptly.
This initiative underscores the government’s dedication to improving the quality of life for Nigerians while driving the nation’s energy transformation agenda.
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ABDULLAHI MAIWADA
Chief Superintendent of Customs
National Public Relations Officer
For Comptroller General of Customs
18 December 2024
