In its effort to lower the nationwide cost of cooking gas, the Federal Government has officially communicated its decision to several government agencies, announcing the exemption of customs duty and value-added tax (VAT) on the importation of liquefied petroleum gas (LPG), otherwise known as cooking gas, and related equipment.
The Ministry of Finance conveyed this decision in a letter dated November 28, 2023, directed to key 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, underscores the government’s commitment to enhancing the investment climate, meeting local LPG demand, reducing market prices, and promoting eco-friendly cooking practices.
Quoting the letter, it underscores, “In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99.”
As a result, the letter specifies that the importation of LPG, utilizing specific HS Codes, is now exempt from Import Duty and Value-Added Tax, implementing a 0% duty rate and 0% VAT rate immediately. The Ministry also instructed the Nigerian Customs Service to comply with the presidential directive dated July 29, 2022, and withdraw all debit notes issued to petroleum marketers who imported LPG between August 26, 2019, and the present date.
Moreover, the communication includes a comprehensive list of items, such as LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, and LPG trucks, among others, that are also exempt from VAT and duty payments.
Minister Ekperikpe Ekpo, responsible for Petroleum Resources (Gas), conveyed President Bola Tinubu’s concerns about the escalating cost of cooking gas and its impact on the lives of Nigerians. He emphasized the abundance of gas in Nigeria and stressed the government’s obligation to ensure ample domestic supply instead of prioritizing exports. Ekpo highlighted the urgency of addressing the rising prices and the challenges associated with import and export processes.
The Ministry of Finance conveyed this decision in a letter dated November 28, 2023, addressed to several 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). Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, signed the letter.
