The Nigeria Customs Service has announced the removal of import duties on imported cooking gas otherwise known as Liquefied Petroleum Gas, as well as all imported equipment and spare parts related to Compress Natural Gas as incentives for their adoption.
This was contained in a statement issued on Wednesday by the National Public Relations Officer of the NCS, Chief Superintendent Abdullah Maiwada.
The materials and products include equipment and spare parts related to LPG and conversion kits for CNG.
Maiwada noted that the incentives were approved in order to help reduce the cost of living and boost Nigeria’s transition to clean energy sources.
He added that the incentives were in line with President Bola Tinubu’s Presidential Gas for Growth Initiative.
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.”
He explained that importers seeking to benefit from these incentives must obtain 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.
“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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” the statement added.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 was committed to the effective implementation of these incentives and urged all stakeholders to ensure strict and prompt compliance.
What you should know
The NCS has removed import duties and Value Added Tax on cooking gas imported under the following Harmonised Commodity Descriptions: 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00
- All equipment related to CNG and LPG are exempted from import tariffs
- These incentives are in line with President Tinubu initiative to expand the use of CNG among Nigerians
- The Presidential CNG initiative aims to convert over one million vehicles to CNG by 2027, but it has converted less than 100,000 vehicles so far.
