In keeping with President Bola Ahmed Tinubu GCFR’s commitment to enhancing Nigeria’s business climate and improving domestic gas utilisation, the Nigeria Customs Service (NCS) announces the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
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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 comprises any 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.
It is crucial to highlight that importers intending to profit 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.
Furthermore, the importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 are free from both Import Duty and VAT. Consequently, any Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date would be removed by the NCS in line with earlier authorisation.
These initiatives are aimed to alleviate the cost of living, bolster energy security, and speed Nigeria’s transition to cleaner energy sources. The NCS, under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi MFR is committed to the proper execution of these incentives and urges all stakeholders to ensure rigorous and fast compliance.
ABDULLAHI MAIWADA Chief Superintendent of Customs National Public Relations Officer For Comptroller General of Customs 18 December 2024
