The Nigeria Customs Service has outlined the prerequisites for Liquified Natural Gas (LNG) marketers to benefit from the Presidential directive on eliminating the import duty for gas-related items and imported LPG along with associated accessories.
To qualify for this exemption, Customs specifies that the items must be accompanied by an approval letter from the office of the Special Adviser to the President on Energy.
This announcement follows the concerns raised by Oladapo Olatunbosun, the National President of the Nigeria Association of LPG Marketers, regarding the lack of implementation of the presidential directive to abolish import duties on gas.
“It is unfortunate that some people and agencies, particularly Nigeria Customs Service, have refused to implement the directive of President Bola Ahmed Tinubu on waiver of import duty on gas items as well as imported gas, among others”, Olatunbosun disclosed this in a statement to Journalists on Thursday.
However, the National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, in a reaction on Thursday, said it was not a case of the agency refusing to carry out the President’s directive.
Maiwada said, “The Customs got the letter on this directive from the Federal Minister of Finance on December 12, and by December 15, it has sent out circulars to the state command to get this directive implemented.
“However, it is not an open-ended thing; there is a caveat to the letter which says that items to enjoy this waiver must be supported with an approval letter from the office of the Special Adviser to the President on Energy. Once this document is presented, the Customs will get the job done.”
Recalls that in a letter dated November 28, 2023, from the Ministry of Finance, the Federal Government approved a 100 per cent tax waiver for LPG importation amid the rising cost of the product in the domestic market.
“Accordingly, the importation of LPG utilizing HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0% duty rate and 0% VAT rate, effective immediately.”
Nigerians have continued to lament the soaring price of cooking gas as the product price has increased from N9,000 for 12kg to over N13,500 to 14,500, depending on the location in Nigeria.