JUST IN: Customs Sets Requirements For LPG Marketers To Qualify For Import Waiver

The Nigeria Customs Service has outlined the conditions for Liquified Natural Gas (LPG) marketers to benefit from the Presidential directive granting a zero import duty on gas items and imported LPG, along with other accessories…CONTINUE READING

According to Customs, entities seeking to avail themselves of this import duty waiver must provide supporting documentation in the form of an approval letter from the office of the Special Adviser to the President on Energy.

This announcement follows the expression of concern by Oladapo Olatunbosun, the National President of the Nigeria Association of LPG Marketers, who lamented the non-implementation of the presidential directive regarding zero import duties on gas.

In response, the National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, clarified that the agency had promptly acted upon receiving the directive from the Federal Minister of Finance on December 12. Circulars were dispatched to state commands by December 15 to ensure the directive’s implementation.

Maiwada emphasized that compliance with the waiver is contingent upon the submission of an approval letter from the office of the Special Adviser to the President on Energy, and once this requirement is met, Customs will proceed with the necessary procedures.

Notably, on November 28, 2023, the Ministry of Finance approved a 100% tax waiver for LPG importation in response to the escalating cost of the product in the domestic market. The directive exempted LPG importation from Import Duty and Value-Added Tax, resulting in a 0% duty rate and 0% VAT rate, effective immediately.

Despite this positive development, Nigerians continue to express dissatisfaction with the surging price of cooking gas, which has risen from N9,000 for a 12kg cylinder to over N13,500 to N14,500, depending on the location in Nigeria.