The Nigeria Customs Service has scrapped import duties on Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) equipment.
Announced in a statement by Abdullahi Maiwada, this move aligns with the Tinubu administration’s push for cleaner energy and increased domestic gas use.
The Nigeria Customs Service (NCS) has eliminated import duties on equipment for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), taking a significant step toward boosting domestic gas utilisation.
To kickstart this initiative, the spokesman for the NCS, Abdullahi Maiwada, announced that the policy aligned with President Tinubu’s vision to promote cleaner energy and reduce living costs.
VAT Zero Rates
Under the new framework, the NCS exempts machinery, equipment, and spare parts used for gas utilisation from import duties.
Furthermore, the policy zero-rates these items for Value Added Tax (VAT).
Specifically, it includes critical components such as CNG and LPG equipment, conversion kits, and infrastructure tied to the Presidential CNG Initiative.
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In addition, the NCS clarified that imported LPG under specific Harmonised System (HS) codes is exempt from VAT and import duties.
To provide further relief, the agency will withdraw debit notes issued for these imports since August 2019.
However, to access these incentives, importers must secure an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and obtain a letter of support from the President’s Special Adviser on Energy.
By introducing these measures, the NCS aims to drive energy reform, strengthen energy security, and accelerate the country’s transition to sustainable energy sources.
Comptroller General of Customs, Bashir Adewale Adeniyi, reaffirmed the agency’s dedication to enforcing the incentives effectively.
Finally, he urged all stakeholders to adhere strictly to the guidelines to maximise the benefits.
This proactive policy signals Nigeria’s commitment to cleaner energy, offering economic relief while fostering sustainable development.
