In a landmark move to enhance Nigeria’s investment climate and promote domestic gas utilisation, the Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
This initiative aligns with President Bola Ahmed Tinubu’s commitment to advancing energy security and transitioning the country to cleaner energy sources.
According to the NCS, machinery, equipment, and spare parts imported for Nigerian gas utilisation will now attract a zero percent (0%) import duty rate, as provided under Part 1, Section 5 of the Customs and Excise Tariff Act. This exemption applies specifically to equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
Additionally, several items are now zero-rated for Value Added Tax (VAT), including:
President Bola Ahmed Tinubu
Compressed Natural Gas and imported Liquefied Petroleum Gas.
CNG and LPG equipment components, conversion, and installation services.
Equipment and infrastructure for expanding CNG and LPG operations under the Presidential CNG Initiative.
These measures aim to reduce costs for businesses and households while fostering the growth of Nigeria’s gas industry.
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.
Furthermore, the Nigeria Customs Service has clarified that LPG imported under specific 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 Debit Notes issued to petroleum marketers for LPG imports dating back to August 26, 2019, will also be withdrawn in compliance with previous approvals.
These incentives are expected to lower the cost of living, encourage private sector investment, and accelerate Nigeria’s transition to cleaner energy. By facilitating the importation of essential equipment and reducing financial barriers, the government aims to bolster energy security and ensure wider access to affordable gas solutions.
Under the leadership of Customs Comptroller General Bashir Adewale Adeniyi, the NCS has reaffirmed its dedication to implementing these reforms effectively. The agency also urged stakeholders to ensure strict compliance with the new measures to achieve the broader goals of the initiative.
For more details on how these policies impact businesses and consumers, visit fasnewsng.com, a trusted partner in delivering accurate and timely updates on national economic policies and initiatives.
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