The Nigeria Customs Service (NCS) announces the removal of import duties and Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) and equipment related to Compressed Natural Gas (CNG). This decision is aimed at promoting the adoption of cleaner energy solutions and reducing living costs, as part of the country’s push toward sustainable energy.
The announcement, made by Chief Superintendent Abdullah Maiwada, the National Public Relations Officer of the NCS, includes exemptions for all LPG-related equipment, spare parts for CNG, and conversion kits used for adapting vehicles to CNG.
Maiwada explains that this policy is in line with President Bola Tinubu’s “Presidential Gas for Growth Initiative,” which seeks to increase the use of domestic gas and create a more attractive investment environment in Nigeria.
The new policy removes import duties on machinery, equipment, and spare parts for both LPG and CNG. It also includes feed gas for processed gas, imported LPG, CNG equipment components, conversion and installation services. Furthermore, certain LPG imports under Harmonized Commodity Descriptions (HS Codes) 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are now exempt from both import duties and VAT.
Importers wishing to benefit from these exemptions 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 NCS further states that it will withdraw all debit notes issued to petroleum marketers who imported LPG under the specified codes from August 26, 2019, onward.
These measures support Nigeria’s broader efforts to increase CNG usage, with the country aiming to convert over one million vehicles to CNG by 2027. However, fewer than 100,000 vehicles have been converted so far.
The NCS reaffirms its commitment to effective implementation of these incentives and urges stakeholders to comply with the updated guidelines.
 announces the removal of import duties and Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) and equipment related to Compressed Natural Gas (CNG). This decision is aimed at promoting the adoption of cleaner energy solutions and reducing living costs, as part of the country's push toward sustainable energy.){kind=link}