Customs begins implementation of zero duty on gas

…promotes 1,419 junior officers

The Nigeria Customs Service (NCS) has announced the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.

With the commencement of the policy, all 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.

The Comptroller General of Customs, Adewale Adeniyi MFR made this known in a statement released by the National Public Relations Officer of the Service, Chief Superintendent of Customs Abdullahi Maiwada.

According to the statement, “In alignment with President Bola Ahmed Tinubu GCFR’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation, the Nigeria Customs Service (NCS) announces the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.

“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.

“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Debit Notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals.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 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 MFR is committed to the effective implementation of these incentives and urges all stakeholders to ensure strict and prompt compliance.”

In another development, the Service  has promoted 1,419 junior officers across various ranks.

This significant decision was ratified during the 10th Management meeting, chaired by the Comptroller General of Customs, Bashir Adewale Adeniyi MFR, on November 29, 2024.

The comprehensive promotion list encompasses both General Duty and Support Staff who excelled in the 2024 promotion exercise. Specifically, 346 General Duty and 384 Support Staff officers were elevated from Assistant Inspector of Customs (AIC) to Inspector of Customs (IC); 4 General Duty and 13 Support Staff officers advanced from Customs Assistant I (CAI) to Assistant Inspector of Customs (AIC); 372 General Duty and 59 Support Staff officers moved up from Customs Assistant II (CAII) to Customs Assistant I (CAI); and 188 General Duty and 54 Support Staff officers were promoted from Customs Assistant III (CAIII) to Customs Assistant II (CAII).

The Comptroller General of Customs urged the newly promoted men to redouble their efforts in fulfilling the Service’s core mandates of revenue generation, suppression of smuggling, and trade facilitation.