The Nigeria Customs Service (NCS) has removed VAT and import duties on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG). This initiative, part of the Presidential Gas for Growth Initiative, aims to boost domestic gas utilization, encouraging investment and reducing gas costs in Nigeria.
The Nigeria Customs Service (NCS) has announced the removal of Value Added Tax (VAT) and import duties on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG). This change aligns with President Bola Ahmed Tinubu’s commitment to improving Nigeria’s investment climate and increasing domestic gas utilization through the Presidential Gas for Growth Initiative.
In a statement issued on December 18, 2024, NCS’s National Public Relations Officer, Abdullahi Maiwada, explained that all machinery, equipment, and spare parts imported for gas utilization in Nigeria would now be subject to a zero percent import duty. This applies to both CNG and LPG-related equipment. Additionally, the VAT exemption includes feed gas, imported LPG, CNG, equipment components, and conversion and installation services.
To benefit from these incentives, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a support letter from the Office of the Special Adviser to the President on Energy. Also, the NCS confirmed that importation of LPG under specified HS Codes would be exempt from both VAT and import duties.
The NCS further clarified that any debit notes issued to petroleum marketers importing LPG under these codes from August 26, 2019, would be withdrawn, in line with the latest directive. This policy is expected to encourage investment in Nigeria’s gas sector and lower the costs associated with gas importation and utilization.
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