Thursday, March 13, 2025

FG Slashes Import Duty and VAT on Gas Equipment to Spur Energy Transition

The Nigerian government has announced a policy eliminating import duty and Value Added Tax (VAT) on critical gas-related equipment. This move is aimed at accelerating the adoption of cleaner energy sources and easing living costs for millions.

The tax exemptions cover machinery, spare parts, and infrastructure for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG). Feed gas for processed CNG and LPG, conversion kits, and installation services are also exempt. Importantly, this policy retroactively applies to LPG imports made under specified HS codes since August 2019, with all previously issued debit notes to be rescinded.

“These policy changes will reduce energy costs, enhance security, and fast-track our transition to a cleaner energy future,” Comptroller General of Customs Bashir Adeniyi stated. The initiative forms a key part of the Presidential Gas for Growth Initiative (PCNGI), a cornerstone of Nigeria’s energy reform strategy.

READ MORE: Nigerian Armed Forces Retire 656 Senior Officers After 22,000 Years of Combined Service

To benefit from these incentives, importers must secure an Import Duty Exemption Certificate (IDEC) from the Ministry of Finance and a letter of support from the President’s Special Adviser on Energy. Adeniyi emphasized strict compliance, assuring stakeholders of seamless implementation.

The National Customs Service (NCS) reiterated its commitment to ensuring the policy achieves its intended impact. “This is a national priority, and we urge all stakeholders to align with this vision,” said Abdullahi Maiwada, the agency’s Public Relations Officer.

The fiscal incentives reflect Nigeria’s broader ambition to reduce carbon emissions and position itself as a leader in Africa’s energy transition. Experts believe these measures could encourage widespread adoption of gas as a cheaper, cleaner alternative to conventional fuels, providing relief to households and businesses grappling with high energy costs.

Hot this week

Nigeria’s Power Generation Hits Record 5,801.84MW Amid Grid Upgrades

Nigeria has achieved a milestone in its electricity sector,...

FG Steps In as Female Coalition Vows to Protest Natasha’s Suspension

The Federal Government (FG) has intervened in the ongoing...

Discipline Debate: Experts Oppose Lagos’ Ban on Corporal Punishment

Lagos State’s decision to ban corporal punishment in schools...

‘We Won’t Tolerate Poor Quality’: FG Warns Developers on Housing Projects

'The Federal Government has issued a stern warning to...

Afreximbank Projects Africa’s Inflation Rate to Decline to 7.2% in 2025

Africa’s inflation rate is set to fall from 8.6%...

US Aid Cuts Disrupt HIV Treatment in Kenya, Leaving 1.4 Million at Risk

Thousands of HIV patients in Kenya are running out...

Nigeria’s Car Imports Drop 14.3% as Inflation, Naira Crisis Bite

The number of new passenger cars imported into Nigeria...

Zulum Approves N1 Billion Grant for Over 9,400 Small Businesses in Borno

Borno State Governor, Babagana Zulum, has approved N1 billion...

Nigeria’s Trade Surplus Hits N21.85 Trillion as Africa Becomes Top Export Market

Nigeria’s trade landscape saw a major shift in 2024,...

Four Men to One Woman: NELFUND Highlights Gender Disparity in Education Loans

Only one in five applicants for Nigeria’s zero-interest education...

2027 Power Play: El-Rufai’s APC Exit Sparks Political Storm

Former Kaduna State Governor, Nasir El-Rufai, has left the...

Congo’s Critical Minerals Attract US Interest for Strategic Partnership

The United States has expressed readiness to explore partnerships...

Nigeria’s Petrol Imports Hit Record N15.42 Trillion in 2024 Despite Refinery Operations

Nigeria’s petrol import costs surged to an unprecedented N15.42...

Related Articles

Popular Categories