Customs Announces Tax Relief for LPG Importation, Withdraws Previous Charges
Removes Import Duties and VAT on Cooking Gas
The Nigeria Customs Service (NCS) has announced the removal of import duties and value-added tax (VAT) on Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
The exemption applies to LPG imports under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00, according to NCS spokesperson Abdullahi Maiwada. The service will withdraw all debit notes issued to petroleum marketers who imported LPG using these codes since August 26, 2019.
The tax relief extends beyond cooking gas to include machinery, equipment, and spare parts for Nigerian gas utilization, which now qualify for zero percent import duty. This covers all equipment related to Compressed Natural Gas (CNG) and LPG imported into Nigeria.
Additional items receiving VAT exemption include:
- Feed gas for processed gas
- Compressed Natural Gas
- Imported LPG
- CNG and LPG equipment components
- Conversion and installation services
- Infrastructure related to CNG, LPG, and Presidential CNG Initiative
Importers seeking to benefit from these incentives must obtain an Import Duty Exemption Certificate from the Federal Ministry of Finance and a support letter from the Office of the Special Adviser to the President on Energy.
Maiwada also added that the move is in alignment with President Bola Tinubu’s commitment to enhancing Nigeria’s investment in climate and increasing domestic gas utilisation, “the service will be implementing fiscal incentives under the Presidential Gas for Growth Initiative.”
He maintained that “These measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
