The Nigeria Customs Service (NCS) has introduced key fiscal incentives under the Presidential Gas for Growth Initiative, aimed at boosting domestic gas utilization and promoting cleaner energy sources in line with President Bola Ahmed Tinubu’s commitment to enhancing Nigeria’s investment climate.
Speaking on the initiative, the Comptroller General of Customs, Bashir Adewale Adeniyi, emphasized, “These measures will significantly reduce the cost of living, enhance energy security, and accelerate our nation’s transition to cleaner energy sources. It’s a step forward for both economic growth and environmental sustainability.”
Under the new policy, machinery, equipment, and spare parts imported for gas utilization, including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) equipment, will now attract a zero percent import duty rate. Similarly, Value Added Tax (VAT) has been waived for feed gas, CNG, LPG equipment components, conversion kits, and services related to the Presidential CNG Initiative.
Highlighting the ease of compliance, Abdullahi Maiwada, the National Public Relations Officer, noted, “Importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a letter of support from the President’s Energy Adviser to benefit from these incentives. This ensures a streamlined process for stakeholders.”
The Customs Service has also directed the withdrawal of all debit notes issued to petroleum marketers for LPG imports under specified HS Codes since August 2019. This move aligns with earlier approvals and reinforces the government’s commitment to supporting the energy sector.
“These incentives reflect our dedication to creating a conducive environment for businesses while ensuring Nigerians have access to affordable, clean energy,” Adeniyi added.
The NCS has urged all stakeholders to ensure prompt compliance with the new measures.