The Nigeria Customs Service (NCS) has commenced the implementation of new fiscal incentives granting exemptions from Import Duty and Value Added Tax (VAT) on the importation of eligible Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and electric vehicles, as part of President Bola Ahmed Tinubu’s Presidential Gas for Growth Initiative.
The initiative follows the release of additional implementation guidelines by the Federal Ministry of Finance aimed at accelerating Nigeria’s transition to cleaner energy and sustainable transportation.
In a statement signed by the National Public Relations Officer of the Service, Deputy Comptroller of Customs Abdullahi Maiwada, the incentives cover 100 per cent CNG vehicles, 100 per cent LPG vehicles, pure electric vehicles, Extended Range Electric Vehicles (EREVs) with a minimum electric range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, certified tricycles and motorcycles, as well as semi-trailers equipped with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
Maiwada stated that the guidelines exempt the approved categories from the payment of Import Duty and VAT on the importation of specified environmentally friendly vehicles, equipment and components.
He explained that importers seeking to benefit from the incentives must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of eligible items.
The Customs spokesperson, however, clarified that hybrid electric vehicles, dual-fuel internal combustion engine vehicles operating on CNG/Petrol or CNG/Diesel, luxury vehicles valued at 100,000 US dollars and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-driven, as well as spare parts of all kinds, are excluded from the incentives.
According to him, the fiscal incentives are intended to reduce transportation and energy costs, encourage investment in clean energy infrastructure, expand the adoption of alternative fuel technologies, and enhance Nigeria’s energy security and environmental sustainability.
Maiwada reaffirmed the commitment of the Nigeria Customs Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, to ensuring the transparent and effective implementation of the policy.
He urged importers, licensed customs agents and other stakeholders in the trade ecosystem to comply fully with the approved guidelines to ensure seamless implementation of the initiative.
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