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A new study commissioned by All On, an off-grid energy impact investment firm seeded by Shell, and carried by leading professional services firm, PwC Nigeria has identified five strategic fiscal incentives that if applied to all categories of clean energy producers and off-grid developers in Nigeria, could assist the Federal Government meet its target of 30% renewable energy sourcing by 2030.
While some of these incentives have been used to encourage the development of other sectors in Nigeria such as the gas sector, the report, titled Strategic Fiscal Incentives to Unlock the Off-Grid Clean Energy Sector in Nigeria: Opportunities & Recommendations,’ proposed alterations to their implementation and comes complete with a strategy to make it work.
Import duty Exemptions
The report recommends complete import duty exemption on the importation of machinery and equipment for use in the generation of off-grid power using renewable energy sources.
Apart from items already in the Customs Schedule, it calls for inclusion of PV panels for power generation, Control systems for PV panels and renewable energy powered generators working with direct current, control systems for PV panels and renewable energy powered generators working with direct current, hydroelectric generators 5 Static DC to alternating current (AC) converters for PV systems.
Others are Inverter batteries, DC electronic equipment for use with PV panels, wind and hydro generators, materials used in building equipment for renewable energy use, measuring instruments related to renewable energy variables, such as: temperature gauges, pressure gauges, solar radiation meters etc. and smart meters.
The report called for VAT exemption on importation of equipment and spare parts for use in renewable energy generation, services rendered in relation to the development and deployment of off-grid technologies and manufacturing, importation, sale or development of renewable energy technologies/equipment.
Pioneer Status Incentives… Read More...