Lagos, Nigeria – The Nigeria Customs Service (NCS) has announced a significant policy shift with the introduction of a zero percent (0%) import duty rate on equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG). The new initiative is aimed at supporting the Tinubu administration’s efforts to boost domestic gas utilisation and accelerate Nigeria’s transition to cleaner energy sources.
In a statement signed by Abdullahi Maiwada, NCS’s National Public Relations Officer, the agency confirmed that machinery, equipment, and spare parts imported for the purpose of enhancing Nigeria’s gas utilisation would now be subject to a 0% import duty rate. This measure is in line with the government’s commitment to promoting the use of natural gas and other cleaner energy alternatives in the country.
Key Exemptions and Benefits
The exemption applies to all equipment related to the importation of CNG and LPG, including key components, conversion kits, and infrastructure needed to support the expansion of these energy sources. In addition to the import duty waiver, all related goods are also exempt from Value Added Tax (VAT) under the new guidelines.
The NCS highlighted that this measure covers feed gas for processed gas, CNG equipment components, LPG equipment components, and services related to the conversion and installation of these systems. Notably, the policy extends to include equipment for the Presidential CNG Initiative, a key project aimed at promoting the widespread adoption of CNG in the country.
Process and Compliance
To benefit from these incentives, importers are required to 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 NCS also clarified that LPG imports under specific HS Codes (2711.12.00.00, 2711.13.00.00, and 2711.19.00.00) are exempt from both import duties and VAT. In addition, all debit notes issued to petroleum marketers who imported LPG under these codes between August 26, 2019, and the present will be withdrawn by the NCS in line with the new directive.
Strategic Goal: Cleaner Energy and Cost Reduction
These measures are designed not only to alleviate the cost of living but also to strengthen Nigeria’s energy security and promote cleaner energy alternatives, especially in the context of rising global energy prices. By removing the financial barriers to importing critical infrastructure for CNG and LPG, the government hopes to foster a more sustainable energy landscape, reduce the country’s carbon footprint, and diversify its energy sources.
“The NCS, under the leadership of Comptroller General of Customs, Bashir Adewale Adeniyi MFR, is fully committed to the effective implementation of these incentives. We urge all stakeholders to ensure strict compliance with the guidelines,” the statement concluded.
This move by the NCS is expected to be a key enabler for Nigeria’s long-term energy goals, especially in driving domestic gas production and consumption. The initiative also ties in with ongoing government efforts to encourage the widespread use of cleaner energy options as part of the country’s energy transition strategy.
