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Posted by toluwalopesong
 - Dec 18, 2024, 09:13 PM
NCS Implements Zero Import Duty, VAT on Gas Utilization Equipment

In a significant move to promote cleaner energy adoption in Nigeria, the Nigeria Customs Service (NCS) has announced the immediate implementation of zero percent import duty and Value Added Tax (VAT) on equipment and machinery used for gas utilization. This policy covers critical components for Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) systems, including conversion kits, storage tanks, and other related infrastructure. The announcement underscores the federal government's commitment to facilitating the country's transition to alternative energy sources and reducing dependence on traditional fossil fuels.

Acting Comptroller-General of Customs, Adewale Adeniyi, disclosed this development during a press briefing, noting that the initiative aligns with the government's broader strategy to address Nigeria's energy challenges. By removing fiscal barriers, the policy aims to encourage investments in the gas sector, enhance local capacity for gas utilization, and support the growing demand for cleaner energy solutions. Adeniyi stated that the policy would significantly reduce the cost of importing gas-related equipment, thereby fostering the development of infrastructure for CNG and LPG usage across the country.

This initiative comes at a time when Nigeria is striving to diversify its energy portfolio and combat environmental degradation caused by traditional energy sources. Stakeholders in the energy sector have applauded the government's decision, describing it as a bold step toward achieving energy sustainability. Industry experts have highlighted the potential for this policy to stimulate the establishment of gas conversion centers, facilitate the deployment of CNG-powered vehicles, and expand LPG usage in households, thereby improving access to affordable and environmentally friendly energy options.

Additionally, the zero-duty policy is expected to bolster Nigeria's capacity to meet its commitments under global climate agreements. By incentivizing the importation of gas infrastructure, the government aims to reduce carbon emissions and promote the use of cleaner energy alternatives. The NCS emphasized that it would work closely with other regulatory bodies to ensure that only genuine equipment and machinery are imported under this scheme, safeguarding the integrity of the initiative.

In conclusion, the implementation of zero import duty and VAT on CNG and LPG equipment represents a major milestone in Nigeria's energy transition journey. It is anticipated to attract foreign and local investors, create jobs, and accelerate the adoption of cleaner energy solutions nationwide. As the policy takes effect, stakeholders are optimistic that it will pave the way for a more sustainable and economically viable energy future for the country.