Nigeria: Tax and customs incentives for gas sector
The Federal Ministry of Finance released a circular setting out various tax and customs incentives for the gas sector.
Tax and customs incentives for gas sector
The Federal Ministry of Finance released a circular entitled “Fiscal Incentives for the Presidential Gas Growth Initiative” setting out various tax and customs incentives for the gas sector—effective from the date of the circular’s issuance:
- Import duty waiver for equipment relating to compressed natural gas (CNG) and liquefied petroleum gas (LPG)
- Zero-rated value added tax (VAT) for feed gas for all processed gas; CNG and related equipment components, conversion, and installation services; imported LPG and LPG equipment components, conversion, and installation services; all equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG initiative, including conversion kits
- Withdrawal of certain debit notes issued to petroleum marketers who import LPG
KPMG observation
Concerns remain regarding the legality and the effective date of the circular, given that fiscal rules are generally within the ambit of the legislative authority and must be published in the official gazette to take effect.
Read a February 2024 report [PDF 1.3 MB] prepared by the KPMG member firm in Nigeria
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