In a landmark move aimed at enhancing Nigeria’s investment climate and accelerating the adoption of cleaner energy sources, the Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
The measures, which aligned with President Bola Ahmed Tinubu’s commitment to economic transformation and energy security, included a zero percent (0%) import duty rate on machinery, equipment, and spare parts imported for gas utilization. This incentive applied to items related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
NCS further disclosed that several key gas-related items and services are now zero-rated for Value Added Tax (VAT). These include feed gas, imported LPG, CNG and LPG equipment components, conversion and installation services, as well as infrastructure under the Presidential CNG Initiative.
To qualify for these incentives, importers 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.
The NCS also revealed that LPG imported under specific HS Codes will be exempted from both import duty and VAT. In addition, petroleum marketers who imported LPG using these codes since August 2019 will have their Debit Notes withdrawn in compliance with prior approvals.
According to the NCS Public Relations Officer, Chief Superintendent Abdullahi Maiwada, these measures aimed to reduce the cost of living, bolster energy security, and promote Nigeria’s transition to cleaner energy sources.
The Comptroller General of Customs, Bashir Adewale Adeniyi, reiterated the agency’s commitment to the effective implementation of these incentives and urged stakeholders to ensure prompt compliance.
This policy is expected to enhance Nigeria’s energy landscape and contribute to the development of a robust gas sector.
