NCS Outlines Conditions for Zero Tariffs on CNG, LPG Equipment

[toluwalopesong]

NCS Outlines Conditions for Zero Tariffs on CNG, LPG Equipment

The Nigeria Customs Service (NCS) has clarified the conditions under which the recently announced zero tariffs on Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) equipment will be implemented. Acting Comptroller-General of Customs, Adewale Adeniyi, made the announcement during a press briefing, emphasizing that the initiative is part of the federal government's efforts to promote cleaner energy adoption and reduce reliance on traditional fossil fuels. However, he stressed the need for compliance with specific regulatory requirements to ensure the smooth execution of the policy.

According to Adeniyi, the zero-tariff policy applies exclusively to certified equipment and machinery used in gas utilization, including conversion kits, storage tanks, and other infrastructure critical to CNG and LPG operations. Importers must present valid documentation, including certificates of compliance from relevant regulatory agencies, to benefit from the waiver. This measure is aimed at preventing abuse of the policy and ensuring that only genuine and high-quality equipment is imported into the country.

The NCS chief highlighted the importance of collaboration with other stakeholders, such as the Department of Petroleum Resources (DPR) and the Standards Organisation of Nigeria (SON), to monitor and regulate the importation process. He assured the public that the service is fully prepared to implement the policy effectively, adding that a dedicated task force has been established to oversee compliance and address potential challenges. "This initiative is a step toward achieving our national energy goals, but it requires the collective effort of all stakeholders to succeed," Adeniyi stated.

The zero-tariff policy is expected to boost investments in the gas sector, particularly in the development of infrastructure for CNG and LPG usage. Industry players have welcomed the initiative, noting that it will lower the cost of importing gas-related equipment, thereby accelerating the adoption of cleaner energy solutions. However, they have also called for transparency in the implementation process to ensure that the benefits reach the intended beneficiaries and contribute to the overall growth of the sector.

In conclusion, the NCS has reiterated its commitment to supporting Nigeria's energy transition agenda through the effective implementation of the zero-tariff policy. As the country moves toward a cleaner and more sustainable energy future, the service has urged stakeholders to adhere to the stipulated guidelines and work collaboratively to maximize the benefits of this groundbreaking initiative.