Fueling Change: LPG Marketers Rally for Zero Duties on Cooking Gas Imports

The National President of the Nigeria Association of LPG Marketers, Oladapo Olatunbosun, has raised concerns and criticized the Nigeria Customs Service for its apparent reluctance to enforce the presidential directive on zero import duties for gas items, including imported Liquefied Petroleum Gas (LPG). In a conversation with reporters, Olatunbosun expressed dissatisfaction with the Customs Service’s failure to fully embrace the implementation of the directive, despite a circular from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, instructing relevant agencies to comply.

Olatunbosun emphasized that many of their members with imported items currently held at the ports are incurring demurrage costs. These additional expenses, if not addressed promptly, will eventually be passed on to end-users, leading to higher costs for consumers of LPG. This, he argued, would defeat the intended purpose of reducing prices and expanding the utilization of gas, as envisioned by President Bola Ahmed Tinubu.

Expressing his disappointment, Olatunbosun stated, “It is unfortunate that some people and agencies, particularly the Nigeria Customs Service, have refused to implement the directive of President Bola Ahmed Tinubu on the waiver of import duty on gas items, as well as imported gas, among others. These are beautiful measures taken by the President to expand the utilization of gas and bring the price of gas down significantly.”

The national president conveyed the frustration of their members, highlighting the demurrage costs incurred daily at the ports due to the Customs Service’s alleged reluctance. He lamented the recurring issue where leaders have good intentions for the people, but those responsible for implementing government orders choose to act in their own way.

In response to the allegations, the National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, clarified that the Customs service did not disobey the President’s directive. Instead, it forwarded the circular from the finance minister to all its state commands. However, Maiwada explained that the circular came with a caveat stipulating that items eligible for the waiver must be accompanied by an approval letter from the President’s Special Adviser on Energy.

Maiwada stated, “However, it is not an open-ended thing; there is a caveat to the letter which says that items to enjoy this waiver must be supported with an approval letter from the office of the Special Adviser to the President on Energy. Once this document is presented, the Customs will get the job done.”

This clarification sheds light on the procedural requirements attached to the implementation of the directive and suggests that the Customs Service is following the specified protocol. In November, Minister Wale Edun had issued a letter directing the Nigeria Customs Service to exempt cooking gas (LPG) and other related items from Value-Added-Tax (VAT) and import duties. This directive aimed to control the rising prices of LPG and promote the use of gas in the country.

Despite the government’s well-intentioned measures to make gas more accessible and affordable, the ongoing challenges in the implementation process highlight the complexities and hurdles faced by regulatory bodies in translating policy directives into tangible outcomes. The clash between the LPG Marketers and the Nigeria Customs Service underscores the need for effective communication and collaboration between government agencies to ensure the smooth execution of policy initiatives. As the situation unfolds, it remains to be seen how these issues will be resolved and whether the intended benefits of the presidential directive will be fully realized.