Industry experts and stakeholders in the energy sector have commended President Bola Tinubu administration for the full-scale exemptions from Import Duty and Value-Added-Tax (VAT) for Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and associated equipment.
According to the stakeholders and industry experts, the waiver exemptions and other initiatives like the Presidential Compressed Natural Gas Initiative (PCNGI), taken by the federal government, will further boost the energy sector.
Recall that in a significant move aimed at deepening the penetration of LPG and by improving affordability, the federal government announced full-scale exemptions from Import Duty and Value-Added-Tax (VAT) for Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and associated equipment.
The federal government’s approval of the exemption from payment of Import Duty and VAT was as a result of extensive stakeholder engagements by the special adviser to the President on Energy, Olu Verheijen, in close collaboration with the minister of Finance and coordinating minister of the Economy, Wale Edun, and executive chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji.
It was gathered that these engagements had started during the presidential campaign and transition by the President’s economic team, which was led by the Minister of Finance.
Similarly, the Special Adviser to the President on Energy had a series of engagements, with key industry stakeholders in both the LPG and the CNG sector. Also, the Office of the Special Adviser to the President on Energy has been in the forefront of driving key reforms to advance the Presidential Initiative aimed at boosting the nation’s revenue.
In September, Mrs. Verheijen, in partnership with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), concluded a series of strategic engagements with 15 leading international and independent Oil and Gas Companies operating in the country to boost oil and gas investments in the country.
Commenting on the CNG waivers specifically, Mrs. Verheijen stated that “The fiscal incentives on CNG are critical to the success of the PCNGI which aims to improve the adoption of alternative fuels and reduce the cost of transportation.”
Speaking further, Mrs. Verheijen stated that, “The incentives are in line with the wider Presidential Gas for Growth Agenda as President Bola Tinubu has given a clear directive that energy security and affordability are of utmost priority.
Speaking on the development, the President of the Nigerian Gas Association (NGA), Akachukwu Nwokedi, commended President Tinubu’s administration for its courageous leadership in driving key policy interventions and reforms since coming into office.
Also reacting to the development, the Chairman, Clean Cooking Alliance (CCA), Ewah Eleri, acknowledged that the exemption from payment of import duty and value-added tax on the imports of LPG was an important first step in addressing the cooking energy challenges among Nigerian households.
END.