In a bid to enhance Nigeria’s investment climate and promote domestic gas utilisation, the Nigeria Customs Service (NCS) has announced the implementation of new fiscal incentives under the Presidential Gas for Growth Initiative. This initiative aligns with President Bola Ahmed Tinubu’s commitment to advancing the country’s energy transition and improving the standard of living for Nigerians.
The NCS revealed that machinery, equipment, and spare parts imported for Nigerian gas utilisation, including infrastructure related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), will now attract a zero percent import duty rate. In addition, several items are now exempted from Value Added Tax (VAT), including feed gas for all processed gas, compressed natural gas, imported liquefied petroleum gas, and components, conversion kits, and installation services for both CNG and LPG equipment. All equipment and infrastructure supporting the expansion of CNG, LPG, and the Presidential CNG Initiative are also covered under these exemptions.
To benefit from these fiscal incentives, importers are required to obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and secure a letter of support from the Office of the Special Adviser to the President on Energy.
The NCS further clarified that LPG imported under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 is exempt from both import duty and VAT. In line with prior approvals, all debit notes issued to petroleum marketers who imported LPG using these codes between August 26, 2019, and the present date will be withdrawn.
The Comptroller General of Customs, Bashir Adewale Adeniyi, emphasised that these measures aim to reduce the cost of living, strengthen energy security, and accelerate Nigeria’s transition to cleaner energy sources.
The NCS assured stakeholders of its commitment to effectively implementing these policies and called for strict compliance from all parties involved.
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