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The Federal Government has announced the removal of import duty and Value Added Tax (VAT) on all machinery, equipment, and spare parts imported for gas utilization projects in Nigeria.
This policy extends to equipment for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), aiming to encourage cleaner energy usage.
The exemption covers feed gas for processed gas, CNG, and LPG, as well as their associated equipment, components, and installation services.
Also included are conversion kits and infrastructure related to expanding CNG and LPG projects under the Presidential CNG Initiative (PCNGI).
According to a statement from Abdullahi Maiwada, the National Public Relations Officer of the Nigeria Customs Service (NCS), LPG imports under specific Harmonized System (HS) Codes—2711.12.00.00, 2711.13.00.00, and 2711.19.00.00—are now exempt from import duty and VAT.
Additionally, debit notes previously issued to petroleum marketers importing LPG under these codes since August 26, 2019, will be rescinded in line with earlier approvals.
Bashir Adeniyi, the Comptroller General of Customs, explained that the incentives are part of the Presidential Gas for Growth Initiative, which seeks to boost domestic gas usage and support Nigeria’s shift to cleaner energy sources.
To benefit from the incentives, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Ministry of Finance and secure a support letter from the President’s Special Adviser on Energy.
“These measures are designed to lower living costs, improve energy security, and accelerate the nation’s transition to cleaner energy,” Adeniyi said, emphasizing the Nigeria Customs Service’s commitment to effective implementation.
He urged stakeholders to comply with the new policies, underscoring their importance in achieving national energy goals.