CUSTOMS IMPLEMENTS FISCAL INCENTIVES IN
LINE WITH THE PRESIDENTIAL GAS FOR GROWTH INITIATIVE
By Babatunde Aremu
In alignment with President Bola Ahmed Tinubu commitment to
enhancing Nigeria’s investment climate and increasing domestic gas utilisation, The Nigeria
Customs Service (NCS).has announced the implementation of fiscal incentives
under the Presidential Gas for Growth Initiative.
This is contained in a statement issued and signed by Chief Superintendent of customs and National public relations officer of Nigeria customs service, Abdullahi Maiwada.
Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery,
equipment, and spare parts imported for Nigerian gas utilisation are now subject to
a zero percent (0%) import duty rate. This exemption encompasses all equipment
related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG)
imported into Nigeria.
In addition, the following items are now 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,
LPG equipment components, conversion and installation services, and all equipment
and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG
Initiative, including conversion kits.
” It is pertinent to note that importers seeking 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” — The statement said
Furthermore, the importation of LPG under 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LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS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.
These measures according to the NCS are designed to ameliorate the cost of living, bolster energy
security, and accelerate Nigeria’s transition to cleaner energy sources.
The NCS,
under the leadership of the Comptroller General of Customs, Bashir Adewale
Adeniyi has expressed commitment to the effectiveimplementation of these incentives and
urges all stakeholders to ensure strict and prompt compliance.