Cooking gas to get cheaper as Customs announces zero import duty on LPG, CNG

The Nigeria Customs Service ( NCS) has announced the implementation of zero import duty on gas equipment and spare parts.

This move is expected to boost Nigeria’s gas sector and make gas more accessible to Nigerians.

According to the NCS, the development is in line with President Bola Ahmed Tinubu commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation under the Presidential Gas for Growth Initiative.

In a statement issued by Customs spokesman, Abdulahi Maiwada, the exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)
imported into Nigeria.

The statement reads, “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.

” In addition, the following items are now zero-rated for Value Added Tax
(VAT): 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 kitskits.”

To benefit from these incentives, the NCS says importers are required to 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LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.

Comptroller General of Customs, Adewale Adeniyi said the measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.

He said the NCS is committed to the effective implementation of these incentives and urge all stakeholders to ensure strict and prompt compliance.