President of Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM), Oladapo Olatunbosun yesterday said the removal of import duties from cooking gas materials would not immediately reduce the price.
Daily Trust reports that the Nigeria Customs Service (NCS) has implemented the removal of import duties on imported Liquefied Petroleum Gas (LPG) otherwise known as cooking gas as well as all imported equipment and spare parts associated with Compressed Natural Gas (CNG) as incentives for their adoption.
This was contained in a statement issued by the National Public Relations Officer of the NCS, Chief Superintendent Abdullah Maiwada.
The materials and products include equipment and spare parts related to LPG and conversion kits for CNG.
- How FG will achieve 15% inflation in 2025 – Presidency
- Tax waiver on pharma products begins January 2025 – FG
Daily Trust reports that the decision was earlier taken by the federal government to reduce the price of cooking gas which is presently on the increase and unaffordable to many homes.
Maiwada in the statement noted that the incentives were approved in order to help reduce the cost of living and boost Nigeria’s transition to clean energy sources.
The statement read: “In alignment with President Bola Ahmed Tinubu GCFR’s commitment to enhancing Nigeria’s investment climate and increasing domestic gas utilisation, the Nigeria Customs Service (NCS) announces the implementation of fiscal incentives under the Presidential Gas for Growth Initiative.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilisation are now subject to a zero percent (0%) import duty rate. This exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG imported into Nigeria.
“In addition, the following items are now zero-rated for Value Added Tax (VAT): feed gas for all processed gas, Compressed Natural Gas, imported Liquefied Petroleum Gas, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion of CNG, LPG and the Presidential CNG Initiative, including conversion kits.
However, President of Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM), Oladapo Olatunbosun said the price is still on the increase.
He said there are other minor expenses that add to the cost of gas.
“This policy is not new. It is true that the government said we should not pay duty on gas and some gas equipment but the situation we have now is that the price of gas is still on the high side. Yes they have started implementing that but that does not mean there are no other expenses. The expected effect is that gas prices should reduce drastically but the prices have not gone down significantly.”
Energy Expert, Dr. Ayodele Oni said, “It would translate to overall cheaper prices. It is just pertinent that implementation is well monitored.”
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
