Good News: Customs Begins Implementation of FG Plans To Crash Cooking Gas Price in 2024
- The Nigeria customs has finally removed duty from cooking gas imports in the country as directed by the federal government
- The implementation is expected to crash the price of cooking in the coming months which has been a burden to Nigerian household
- Latest data from the National Bureau of Statistics revealed that the average price of cooking gas for 12kg is now over N10,000
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
The Nigeria Customs Service(NCS) has announced it no longer charges duty on processed Compressed Natural Gas and imported Liquefied Natural Gas (LPG).
This was confirmed by Abdullahi Maiwada, the National Public Relations Officer, Punch reports.
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FG waives cooking gas duty
Legit.ng had earlier reported Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, directed NCS to immediately apply a zero per cent duty on CNG, LPG, CNG and all accessories.
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This directive is in a circular titled ‘Fiscal Incentives for the Presidential Gas for Growth Initiative’, reads:
“In line with His Excellency, Mr President’s commitment to improve the investment climate in Nigeria, and to increase the utilisation and supply of gas in the domestic market:
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, which grants an Import Duty Waiver on machinery, equipment and spare parts imported into Nigeria for the utilization of Nigerian gas (‘Gas Utilisation Waiver’), the importation of all equipment related to Compressed Natural Gas and Liquefied Petroleum Gas into the Nigerian market shall attract zero per cent (0%) import duty rate.’’
The decision the federal government hopes will help reduce cooking gas prices from the current rate of N11,155.15 for 12.5kg cylinder in November 2023.
Customs confirm duty from LPG
Speaking further, Maiwada said the new instruction on 100% waiver on LPG and commodity circular to all its formations and commands with immediate effect.
However, he mentioned that in order for someone to take advantage of the duty exemption, they would need to have obtained a support letter from the President's Energy Special Adviser's office.
Maiwada outlined several items eligible for the presidential gas growth initiative, such as CNG vehicles, electric vehicles, LPG/CNG conversion kits, gas burners, gas water heaters, gas air conditioners, and more
Cabal behind the rising price of cooking gas in Nigeria
Legit.ng reported that cooking gas marketers under the Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) accused the Liquified Petroleum Gas terminal operators of causing the country's high cooking gas cost.
Oladapo Olatubosun, the association's president, disclosed this when they met the Senate committee on gas in the company of the group members on Monday, October 23, 2023.
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Source: Legit.ng
