The Nigeria Customs Service (NCS) has announced a zero percent (0%) import duty rate on equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
In a statement signed by Abdullahi Maiwada, the agency’s national public relations officer, the NCS explained that this measure aligns with the Tinubu administration’s goal to promote domestic gas utilisation. The exemption is backed by Part 1, Section 5 of the Customs and Excise Tariff Act.
The zero-duty rate applies to machinery, equipment, and spare parts imported for gas utilisation. This includes all equipment and infrastructure related to CNG and LPG, such as conversion kits, components, and installation services. Additionally, these items, along with feed gas and processed gas, are now zero-rated for Value Added Tax (VAT).
To qualify for these incentives, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a support letter 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. Debit Notes previously issued to petroleum marketers for LPG imports under these codes, dating back to August 26, 2019, will be withdrawn.
According to the NCS, these measures aim to lower living costs, strengthen energy security, and accelerate Nigeria’s transition to cleaner energy sources.
The NCS, led by Comptroller General Bashir Adewale Adeniyi MFR, reaffirmed its commitment to implementing these incentives effectively and urged all stakeholders to comply with the new regulations.
Credit: Businessday (Text Excluding Headline)
