News Investigators/ The Nigeria Customs Service (NCS) has announced a zero import duty on machinery, equipment, and spare parts for gas utilisation in Nigeria.
This initiative is part of the Presidential Gas for Growth Initiative, which aims to foster the development of the nation’s gas sector.
The announcement was made in a statement issued by NCS Spokesman Abdullahi Maiwada on Wednesday in Abuja.
The News Agency of Nigeria (NAN) reports that the Presidential Gas for Growth Initiative was conceived to leverage Nigeria’s vast natural gas resources to boost economic growth, create jobs, and reduce energy poverty.
Mr Maiwada explained that this move aligned with President Bola Tinubu’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation.
“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 per cent import duty rate.
“The exemption applies to all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
“In addition, several items have been zero-rated for Value Added Tax (VAT), including feed gas for all processed gas, CNG, imported LPG, CNG equipment components, conversion and installation services, LPG equipment components, and all infrastructure related to CNG, LPG, and the Presidential CNG Initiative.”
However, Mr Maiwada stated 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.
He also announced the exemption of import duty and VAT on LPG imported into Nigeria under specific Harmonised System (HS) codes, including HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00.
According to him, this exemption is expected to reduce the cost of importing LPG, making it more affordable for businesses and consumers.
Mr Maiwada further stated that all Debit Notes issued to petroleum marketers who imported LPG using these codes from August 26, 2019, to the present would be withdrawn by the NCS, in line with previous approvals.
He emphasised that these measures were designed to reduce the cost of living, strengthen energy security, and accelerate Nigeria’s transition to cleaner energy sources.
“The NCS, under the leadership of the Comptroller-General of Customs, Adewale Adeniyi, is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance,” he said.
NAN