Nigeria Customs Introduces Fiscal Incentives to Boost Gas Utilisation under Presidential Initiative
In a strategic move aligned with President Bola Ahmed Tinubu’s Presidential Gas for Growth Initiative, the Nigeria Customs Service (NCS) has announced the implementation of robust fiscal incentives aimed at improving Nigeria’s investment climate and promoting domestic gas utilisation.
The initiative, which reflects the administration’s commitment to economic growth and cleaner energy solutions, introduces a zero percent (0%) import duty rate on machinery, equipment, and spare parts intended for Nigerian gas utilisation.
According to a statement signed by Abdullahi Maiwada, Chief Superintendent of Customs and National Public Relations Officer, on behalf of the Comptroller General of Customs, this exemption extends to all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into the country, in accordance with Part 1, Section 5 of the Customs and Excise Tariff Act.
Additionally, Value Added Tax (VAT) exemptions have been granted for a wide range of items, including feed gas for processed gas, imported LPG, CNG equipment components, LPG equipment components, and services related to conversion and installation.
The incentives also cover infrastructure essential to the expansion of CNG and LPG use under the Presidential CNG Initiative, with conversion kits included.
To benefit from these incentives, importers are required to 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.
Notably, LPG imports classified under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are fully exempt from both Import Duty and VAT.
The Customs Service further announced that all Debit Notes previously issued to petroleum marketers for LPG imports under these codes since 26 August 2019 will be withdrawn in compliance with earlier approvals.
These fiscal measures are designed to alleviate the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources.
Speaking on the development, the Comptroller General of Customs, Bashir Adewale Adeniyi, MFR, reaffirmed the NCS’s dedication to ensuring the effective implementation of these policies.
He also urged stakeholders to adhere strictly and promptly to the requirements for compliance.
The NCS, under its current leadership, continues to play a pivotal role in driving initiatives that align with the nation’s broader economic and environmental goals.
