Presidential Gas for Growth Initiative: Customs Service Exempts Gas Equipment from Duties

by The Ajasa News | December 18, 2024 5:34 pm

In a move to enhance Nigeria’s investment climate and increase domestic gas utilization, the Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives under the Presidential Gas for Growth Initiative. This initiative is in line with President Bola Ahmed Tinubu’s commitment to promoting economic growth and development in the country.

As part of this initiative, the NCS has exempted machinery, equipment, and spare parts imported for Nigerian gas utilization from import duty, effective immediately. This zero percent import duty rate applies to all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria.

Furthermore, the following items are now zero-rated for Value Added Tax (VAT):

– *Feed Gas*: For all processed gas, this exemption is expected to reduce the cost of production and make gas more competitive in the market.

– *Compressed Natural Gas (CNG)*: This exemption will encourage the use of CNG as a cleaner and more efficient alternative to traditional fuels.

– *Imported Liquefied Petroleum Gas (LPG)*: The zero-rating of VAT on imported LPG will help increase its availability and affordability in the country.

– *CNG Equipment Components*: The exemption includes components, conversion, and installation services, making it easier for businesses to adopt CNG technology.

– *Conversion and Installation Services*: This exemption will facilitate the conversion of vehicles and equipment to run on CNG, promoting a cleaner and more sustainable energy mix.

These fiscal incentives are expected to stimulate investment in the gas sector, increase domestic gas utilization, and contribute to Nigeria’s economic development. The NCS is committed to supporting the Presidential Gas for Growth Initiative and promoting a favorable business environment in the country.

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