Nigeria Customs Waives Duties on CNG, LPG Imports Under Presidential Initiative
Author: Lucy Nyambi.
The Nigeria Customs Service (NCS) has announced the removal of import duties and taxes on key gas-related equipment and products under the Presidential Gas for Growth Initiative.
The National Public Relations Officer of the NCS, Chief Superintendent of Customs (CSC) Abdullahi Maiwada, in a press release issued on Wednesday, 18 December 2024, disclosed that the initiative aligns with President Bola Ahmed Tinubu’s vision to enhance Nigeria’s investment climate and increase domestic gas utilisation.
Maiwada stated, “Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for gas utilisation in Nigeria are now subject to a zero per cent import duty rate.”
He explained that the exemption applies to all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
The NCS has also introduced a zero Value Added Tax (VAT) policy for 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.
“It is pertinent to note 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,” Maiwada stated.
He further added that the importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 is exempted from both Import Duty and VAT.
This includes the retroactive withdrawal of debit notes issued to petroleum marketers who imported LPG using these codes since 26 August 2019.
The National PRO emphasised that these measures are designed to reduce the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
He stated the NCS’s commitment, under the leadership of Comptroller General Adewale Adeniyi, to ensure the seamless implementation of these incentives and urged all stakeholders to ensure strict and prompt compliance.
