The Nigeria Customs Service has removed import duties on Liquefied Petroleum Gas and related equipment, including conversion kits for Compressed Natural Gas.
This move aims to encourage the adoption of cleaner energy solutions.
This was disclosed in a statement was by Chief Superintendent, Abdullah Maiwada, the NCS’s National Public Relations Officer.
The materials and products affected by the duty removal include equipment and spare parts for Liquefied Petroleum Gas as well as conversion kits for CNG.
Maiwada explained that the removal of import duties is aimed at reducing the cost of living and supporting Nigeria’s transition to cleaner energy sources.
He also highlighted that the incentives align with President Bola Tinubu’s Presidential Gas for Growth Initiative, which seeks to promote the use of gas as a key energy resource for economic growth.
The statement read: “In alignment with President Bola Ahmed Tinubu GCFR’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation, the Nigeria Customs Service (NCS) announces the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilisation are now subject to a zero percent (0%) import duty rate. This exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG imported into Nigeria.
“In addition, the following items are now zero-rated for Value Added Tax (VAT): feed gas for all processed gas, Compressed Natural Gas, imported Liquefied Petroleum Gas, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG Initiative, including conversion kits.
“Furthermore, the importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are exempted from both Import Duty and VAT.”
Maiwada stated that importers who wish to benefit from these incentives must obtain an Import Duty Exemption Certificate from the Federal Ministry of Finance. Additionally, they need a letter of support from the Office of the Special Adviser to the President on Energy.
“Consequently, all Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” the statement added.
The NCS assured that it is committed to the effective implementation of these incentives. It also urged all stakeholders to ensure strict and prompt compliance with the requirements to benefit from the duty exemptions.
