The implementation of the Federal Government's 100% duty waiver for processed Compressed Natural Gas and imported liquid petroleum gas has commenced, as announced by the Nigeria Customs Service.

In an exclusive interview with The PUNCH, Abdullahi Maiwada, the National Public Relations Officer of the NCS, informed that the exemption also applies to electric vehicles, gas air conditioners, and other items.

As previously directed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, the NCS has been instructed to immediately impose a zero percent duty on CNG, LPG, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, as well as all equipment and infrastructure associated with the expansion of CNG, LPG, and the Presidential CNG Initiative, including conversion kits.

The Ministry, through a circular titled 'Fiscal Incentives for the Presidential Gas for Growth Initiative,' emphasized the commitment to improving the investment climate and increasing gas utilization and supply in the domestic market. As a result, the importation of all equipment related to Compressed Natural Gas and Liquefied Petroleum Gas into Nigeria will now be subject to a zero percent import duty rate, in alignment with the applicable legislation.

According to Maiwada, a circular has been issued to all NCS formations and commands, and the initiative is now in effect.

The directive from the Federal Government was received by the NCS on December 12, 2023, and a memo was subsequently sent to all commands and formations on December 15, instructing them to commence the implementation of the initiative nationwide.

To benefit from the duty exemption, individuals must obtain a letter of support from the office of the Special Adviser to the President on Energy, clarified Maiwada.

"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," he emphasized.

In order to avail oneself of the import customs duty exemption for Compressed Natural Gas equipment, it is imperative to obtain a letter of support from the office of the Special Adviser to the President on Energy. This particular condition must be met to qualify for the exemption from customs duty payment.

Included in the list of items that can benefit from the presidential gas growth initiative, as stated by Maiwada, are CNG vehicles, electric vehicles, conversion kits for LPG/CNG, gas burners, gas water heaters, gas air conditioners, and various others.

According to a report by The PUNCH on December 22, 2023, Oladapo Olatunbosun, the National President of the Nigeria Association of LPG Marketers, criticized the NSC for its apparent reluctance to implement the presidential directive concerning zero import duties on gas items and imported LPG. While commending President Bola Tinubu for issuing the directive with the aim of reducing the escalating price of LPG, Olatunbosun observed that government agencies, notably the NSC, which played a vital role in executing the government's timely intervention, had allegedly failed to carry out the directive. Olatunbosun lamented, "It is regrettable that certain individuals and agencies, particularly the Nigeria Customs Service, have chosen not to comply with President Bola Tinubu's directive on waiving import duty for gas items and imported gas, among others. "These are commendable measures instigated by the President to enhance gas utilization and significantly reduce its price."