The Nigeria Customs Service (NCS) has announced the removal of Value Added Tax (VAT) and import duty on Liquefied Petroleum Gas (LPG), commonly known as cooking gas, and Compressed Natural Gas (CNG).
In a statement released on Wednesday, December 18, the NCS National Public Relations Officer, Abdullahi Maiwada, confirmed that the fiscal measures align with President Bola Ahmed Tinubu’s commitment to boosting Nigeria’s investment climate and increasing domestic gas utilization through the Presidential Gas for Growth Initiative.
The statement reads:
“In line with the Presidential Gas for Growth Initiative, the Nigeria Customs Service has implemented fiscal incentives to promote the use of gas in Nigeria. This includes zero per cent (0%) import duty on machinery, equipment, and spare parts related to Nigerian gas utilization, as well as VAT exemptions for key items.”
Key highlights of the incentive include:
- Zero Import Duty: Applicable to all machinery, equipment, and spare parts for CNG and LPG.
- VAT Exemptions: Covering feed gas for all processed gas, imported CNG and LPG, conversion and installation services, equipment components, and infrastructure for expanding CNG and LPG utilization.
The NCS emphasized that importers wishing to access these benefits 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.
Additionally, the importation of LPG under specific HS Codes (2711.12.00.00, 2711.13.00.00, and 2711.19.00.00) is exempted from both VAT and Import Duty.
The NCS assured stakeholders of its commitment to facilitating the smooth implementation of these incentives while urging importers to comply with the required processes.
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