Nigeria Customs Service Implements Fiscal Incentives to Boost Gas Utilisation
The Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives to support President Bola Ahmed Tinubu's Gas for Growth Initiative. The initiative is part of the administration's efforts to enhance Nigeria’s investment climate, increase domestic gas utilisation, and drive the country’s transition to cleaner energy sources.
In line with Part 1, Section 5 of the Customs and Excise Tariff Act, the NCS has approved a zero percent (0%) import duty rate on machinery, equipment, and spare parts imported for gas utilisation. This includes all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
Additionally, the following items are now exempted from Value Added Tax (VAT):
- Feed gas for processed gas, CNG, and LPG.
- Equipment components and services for CNG and LPG conversion and installation.
- Infrastructure and conversion kits for the Presidential CNG Initiative.
The NCS also confirmed that LPG imports under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are exempt from both Import Duty and VAT. Importantly, any debit notes issued to petroleum marketers for LPG imports under these codes since August 26, 2019, will be withdrawn, in accordance with previous government approvals.
To benefit from these incentives, importers are required to secure 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.
Speaking on the initiative, the Comptroller General of Customs, Bashir Adewale Adeniyi, reaffirmed the agency’s commitment to implementing these measures effectively. He emphasized that the incentives aim to reduce living costs, strengthen energy security, and promote Nigeria’s shift to cleaner energy solutions.
The NCS has called on stakeholders to ensure strict compliance with the outlined procedures and timelines.
For further inquiries, stakeholders can contact the NCS through its official communication channels.
Issued by:
Abdullahi Maiwada
Chief Superintendent of Customs
National Public Relations Officer
For Comptroller General of Customs
Date: December 18, 2024
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