The Nigeria Customs Service (NCS) has announced a zero percent duty on the importation of compressed natural gas (CNG) and liquefied petroleum gas (LPG) equipment, a move aimed at encouraging clean energy adoption and reducing costs for consumers.
In a statement on Wednesday, the NCS said the decision aligns with President Bola Tinubu’s commitment to improving the country’s investment climate and increasing domestic gas utilisation as part of the Presidential Gas for Growth Initiative.
Under the new policy, machinery, equipment, and spare parts used for CNG and LPG will no longer attract import duties. Additionally, items such as feed gas, imported LPG, CNG and LPG equipment components, and conversion and installation services are now exempt from Value Added Tax (VAT). The measures are expected to lower the cost of cooking gas, enhance energy security, and support Nigeria’s transition to cleaner energy sources.
The service said importers seeking to benefit from the 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.
The agency also said the importation of LPG under harmonised system (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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” the service added.
Bashir Adeniyi, Comptroller-General of the NCS, reaffirmed the agency’s commitment to implementing the policy effectively and called on stakeholders to comply promptly.
The announcement follows the federal government’s decision on December 9 to exempt LPG and related equipment from customs duties and VAT, a move widely expected to lower the cost of cooking gas for households across Nigeria.