The Federal Government, through the Nigeria Customs Service (NCS), has announced that the importation of Liquefied Petroleum Gas (LPG), also known as cooking gas, under the HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 will be exempt from both import duty and value-added tax (VAT).
In a statement issued on Wednesday, Abdullahi Maiwada, the National Public Relations Officer of the NCS, also confirmed that all debit notes previously issued to petroleum marketers who imported LPG using these codes from August 26, 2019, to the present would be withdrawn, in line with prior approvals.
Maiwada added that this decision aligns with President Bola Tinubu’s commitment to boosting Nigeria’s investment in climate-friendly initiatives and increasing domestic gas utilisation. He noted that the NCS will implement fiscal incentives under the Presidential Gas for Growth Initiative.
“The importation of LPG under these specific HS Codes is exempt 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debit notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” Maiwada stated.
He further explained that, in accordance with 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 import duty rate. This exemption applies to all equipment related to Compressed Natural Gas (CNG) and LPG imported into Nigeria.
Additionally, Maiwada outlined that several other items are now zero-rated for VAT, including feed gas for all processed gas, CNG, imported LPG, CNG equipment components, LPG equipment components, conversion and installation services, as well as all equipment and infrastructure related to the expansion of CNG and LPG, including conversion kits.
Maiwada stressed that importers wishing to benefit from these incentives must obtain an Import Duty Exemption Certificate from the Federal Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy.
“These measures are aimed at alleviating the cost of living, enhancing energy security, and accelerating Nigeria’s transition to cleaner energy sources,” he added.
He also reaffirmed the NCS’s commitment under the leadership of Comptroller General Adewale Adeniyi to the effective implementation of these incentives and urged all stakeholders to ensure strict and prompt compliance.