By Dapo Akinrefon

Industry experts and stakeholders in the energy sector have commended President Bola Tinubu’s 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 noting that the initiatives will drive key policy interventions, reforms in the energy sector.

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.

It would be recalled that the Federal Government has 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.

Commenting on the CNG waivers, Special Adviser to the President on Energy, Mrs. Olu Verheijen said: “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.

“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.

“The Federal Government is actively seeking ways to enhance gas supply domestically and ensure the growth of the sector. These fiscal incentives align with President Tinubu’s commitment towards improving Nigeria’s investment environment.”

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.

Nwokedi said: “The recent exemption of LPG imports from payment of import duty and Value Added Tax (VAT) is another commendable directive that will significantly grow the LPG sector in Nigeria
“Worthy of mention are the PMS subsidy removal, Presidential Compressed Natural Gas Initiative (PCNGI), the signing of the Finance Act and Electricity Act. We also commend the proactive efforts of the Special Adviser to the President on Energy, who has been facilitating conversations and consulting with key industry stakeholders.

“These intentional steps are yielding positive outcomes in policy and regulatory changes, which will help attract long-term capital, deepen the domestic gas market (CNG, LPG and LNG), and in line with the objectives of the ‘Decade of Gas’, unlock the latent potential of natural gas as a catalyst to achieving the nation’s energy transition goals, an optimized and fit-for-purpose energy mix, and the aspirations of Mr President to build for Nigeria a trillion-dollar economy.”

Also reacting to the development, the Chairman of 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.

Eleri said: “Over the past year, the price of cooking gas has significantly increased, sending families back to cooking with wood in traditional open fire. This is claiming lives, damaging the environment, and putting a burden on women. The Nigerian Alliance for Clean Cooking welcomes this policy Initiative and commends the administration for taking this positive step. We look forward to working with the government in expanding access to clean cooking for all.”

On its part, the Executive Council of the Nigeria Liquefied Petroleum Gas Association (NLPGA), which recently paid a courtesy visit to Mrs Verheijen at her office, commended the Special Adviser to the President on Energy and her team for being “alert and well informed concerning the needs and challenges of the industry.”

“During our courtesy call, the Special Adviser informed the NLPGA delegation that she would require a detailed list of grievances and action points that needed intervention or resolution. We dutifully submitted same to her office within a short time after consultation with our members.

“We received a quick acknowledgment that identified those requests that would be attended to. Everything to this point was routine as with previous administrations. What was not routine was receiving a call from her (Verheijen) office just a few weeks later with the requisite approvals, waivers and erasures (of retroactive tax). A number of these issues had been pending for between 3 to 6 years.

“Also, it removes the burden of an onerous retroactive tax on some of our major players; and puts real substance behind the Federal Government’s drive for Autogas,” the President, NLPGA, Mr. Felix Ekundayo, said.