Thelma Osatohanmwen
The Nigerian government has decided to remove customs duty and value-added tax (VAT) on the importation of liquefied petroleum gas (LPG), commonly known as cooking gas.
This initiative aims to reduce the cost of cooking gas across the country and is part of efforts to enhance clean cooking practices.
The Ministry of Finance conveyed this decision in a letter dated November 28, 2023, addressed to various officials, including the Special Adviser to the President on Energy, the Comptroller-General of the Nigeria Customs Service (NCS), and the Chairman of the Federal Inland Revenue Service (FIRS).
The letter, signed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, referenced a presidential directive dated July 29, 2022. According to the directive, the importation of LPG utilizing specified HS Codes is exempt from Import Duty and Value-Added Tax. This exemption results in a 0% duty rate and 0% VAT rate on LPG imports, effective immediately.
The Ministry also directed the Nigerian Customs Service to comply with the presidential directive and withdraw all debit notes issued to petroleum marketers who imported LPG using specified codes from August 26, 2019, to the present date. Additionally, items such as LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks are also exempted from VAT and duty payment.
The move comes in response to concerns raised by President Bola Tinubu about the rising cost of cooking gas and its impact on citizens. The government aims to increase the supply of LPG to meet local demand, reduce market prices, and promote cleaner cooking practices.
