The Nigeria Customs Service has begun the implementation of the Federal Government’s 100 per cent duty waiver for all processed Compressed Natural Gas and imported liquid petroleum gas.
The National Public Relations Officer of the NCS, Abdullahi Maiwada, disclosed this to media in an exclusive interview on Tuesday, adding that the waiver also extends to electric vehicles, gas air conditioners and others.
It could be recalled that the Federal Government, through the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, had directed NCS to immediately apply a zero per cent duty on CNG, LPG, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion CNG, LPG and the Presidential CNG Initiative, including conversion kits.
In a circular titled ‘Fiscal Incentives for the Presidential Gas for Growth Initiative’, the Ministry directed that “In line with His Excellency, Mr President’s commitment to improve the investment climate in Nigeria, and to increase the utilisation and supply of gas in the domestic market:
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, which grants an Import Duty Waiver on machinery, equipment and spare parts imported into Nigeria for the utilization of Nigerian gas (‘Gas Utilisation Waiver’), the importation of all equipment related to Compressed Natural Gas and Liquefied Petroleum Gas into the Nigerian market shall attract zero per cent (0%) import duty rate.’’
Speaking with our correspondent, Maiwada confirmed that the NCS had sent out a circular to all its formations and commands with immediate effect.
According to Maiwada, NCS received the Federal Government’s directive on December 12, 2023.
He disclosed that a memo was issued and sent to all NCS commands and formations on December 15 to commence the implementation of the initiative across the country.
The NCS spokesman clarified that for an individual to benefit from the duty exemption, he must have got a letter of support from the office of the Special Adviser to the President on Energy.
He asserted, “We received a circular to that effect from the Federal Ministry of Finance on the 12th of December 2023. And we issued a circular to our commands and formations on the 15th of December. We have 41 items exempted from import duty under this initiative.
“Before someone benefits from that import customs duty exemption, in relation to Compressed Natural Gas equipment, it requires a letter of support from the office of the Special Adviser to the President on Energy. That is the criterion for you to benefit from the exemption from the payment of customs duty.”
Maiwada listed some of the items to benefit from the presidential gas growth initiative to include: CNG vehicles, electric vehicles, LPG/CNG conversion kits, gas burners, gas water heaters, gas air conditioners, among others.
Media reported on December 22, 2023, that the National President of Nigeria Association of LPG Marketers, Oladapo Olatunbosun, berated the NSC for its alleged reluctance to implement the presidential directive on zero import duties on gas items and imported LPG.
Olatunbosun, while hailing President Bola Tinubu for giving the directive in order to crash the rising price of LPG, noted that the agencies of government, particularly the NSC that was central to implementing the timely intervention of the government, had allegedly refused to execute it.
Olatunbosun declared, “It is unfortunate that some people and agencies, particularly Nigeria Customs Service, have refused to implement the directive of President Bola Tinubu on waiver of import duty on gas items as well as imported gas, among others.
“These are beautiful measures taken by the President to expand the utilisation of gas and bring the price of gas down significantly.”
