The Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives under the Presidential Gas for Growth Initiative, a strategic move aimed at enhancing Nigeria’s investment climate and expanding domestic gas utilization. This initiative aligns with President Bola Ahmed Tinubu’s commitment to fostering energy security and promoting cleaner energy sources.

In a statement released by the NCS, machinery, equipment, and spare parts imported for gas utilization in Nigeria are now subject to a zero percent import duty rate. This exemption covers all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

Additionally, key items such as feed gas for processed gas, imported LPG, CNG and LPG equipment components, conversion and installation services, and infrastructure related to the expansion of the Presidential CNG Initiative have been zero-rated for Value Added Tax (VAT). Importers wishing to benefit from these incentives must secure 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.

The NCS also announced that LPG imported under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 is now exempt from both Import Duty and VAT. Furthermore, Debit Notes issued to petroleum marketers for LPG imports dating back to August 26, 2019, will be withdrawn in compliance with prior approvals.

These measures are part of broader efforts to lower the cost of living, ensure energy security, and accelerate the transition to cleaner energy sources in Nigeria. The Comptroller General of Customs, Bashir Adewale Adeniyi, emphasized the Service’s dedication to the effective implementation of these incentives and called on stakeholders to ensure strict adherence to the outlined provisions.

The NCS reaffirmed its commitment to supporting Nigeria’s gas sector transformation and contributing to a more sustainable energy future.