Nigeria Customs Service has announced a zero percent (0%) import duty rate on equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
The Agency disclosed this is in a statement signed by Abdullahi Maiwada, national public relations officer, NCS.
The move according to the service is in line with the Tinubu administration’s mandate to increase domestic gas utilisation in the country.
It stated that 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.
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This exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
In addition, 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 are now zero-rated for Value Added Tax (VAT).
“It is pertinent to note that 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 importation of LPG under HS Codes 2711.12.00.00,
2711.13.00.00 and 2711.19.00.00 are exempted from both Import Duty and VAT. Consequently, all Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” it stated.
These measures, according to the Agency are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
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“The NCS, under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi MFR is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance.”
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