The Nigeria Customs Service (NCS) has announced the implementation of zero import tariffs on all gas equipment, specifically targeting compressed natural gas (CNG) and liquefied petroleum gas (LPG).
This move is part of the broader Presidential Gas for Growth Initiative aimed at promoting cleaner energy sources across the nation.
In a statement released on Wednesday, Abdullahi Maiwada, the spokesperson for the NCS, outlined the conditions necessary for importers to benefit from this fiscal incentive.
"Importers must present a letter of Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance," Maiwada stated. Additionally, a letter of support from the Office of the Special Adviser to the President on Energy is required.
The initiative is designed to alleviate the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources. Under Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilization are now subject to a zero percent import duty rate. This exemption includes all equipment related to CNG and LPG.
Furthermore, the NCS has identified items that are zero-rated for Value Added Tax. These include feed gas for processed gas, CNG and LPG equipment components, conversion and installation services, and infrastructure related to the expansion of CNG and LPG.
Specific HS Codes, such as 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00, are also exempt from import duty.
"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debit notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals," the statement added.
Comments