The Nigeria Customs Service (NCS) has commenced the implementation of zero duty payment on gas-powered machinery, equipment, and spare parts imported into the country under the Presidential Gas for Growth Initiative.
The fiscal incentive policy on gas equipment import is in line with Federal Government’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation.
It is also pursuant to Part 1, Section five of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilization, which are now subject to a zero per cent import duty rate.
A statement issued on the new zero duty by the Service’s National Public Relations Officer, Chief Superintendent Abdullahi Maiwada, indicated that this exemption encompassee all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.
Under the new fiscal regime, some items have been classified under zero Value Added Tax (VAT), which include 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 kits.
The statement reads in part: “It is pertinent to note that importers seeking to benefit from these incentives must 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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.
“These measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources. The NCS, under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi MFR is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance”, it added.
