Imported Liquefied Petroleum Gas (LPG) and associated equipment are now exempt from customs duty and value-added tax (VAT) by the federal government.
This move, aligned with President Bola Tinubu’s commitment to improve Nigeria’s investment climate and promote clean cooking practices, is expected to reduce the cost of cooking gas.
The Ministry of Finance, in a letter dated November 28, 2023, directed compliance with the presidential directive, resulting in a 0% duty rate and 0% VAT rate on LPG importation.
Other items, such as LPG cylinders, cascades, detectors, steel pipes, valves, dispensers, generators, and trucks, are also exempt from VAT and duty payments.
The directive is effective immediately pending official gazetting. The Nigeria Customs Service and Federal Inland Revenue Service were instructed to adhere to the directive and withdraw debit notes issued to petroleum marketers for LPG imports.
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