Gas Equipment To Attract Zero Duty – Customs

Imported machinery and equipment for gas utilization will now attract zero duty, according to the Nigeria Customs Service (NCS).

This move aligns with President Bola Tinubu’s fiscal incentives under the Presidential Gas for Growth Initiative.

The NCS announced that, in accordance with Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilization will now be subject to a 0% import duty rate. This exemption includes all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.

Additionally, the following items will be zero-rated for Value Added Tax (VAT):

Feed gas for all processed gas

Compressed Natural Gas

Imported Liquefied Petroleum Gas

CNG equipment components

Conversion and installation services for CNG and LPG

LPG equipment components

Equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG initiative, including conversion kits.

Importers wishing 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.

Moreover, the importation of LPG under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 is exempt from both Import Duty and VAT. As a result, all Debit Notes issued to petroleum marketers who imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with prior approvals.

These measures aim to reduce the cost of living, enhance energy security, and accelerate Nigeria’s transition to cleaner energy sources.

VANGUARD