The Nigeria Customs Service (NCS) has commenced the implementation of additional guidelines issued by the Federal Ministry of Finance to operationalize fiscal incentives under the Presidential Gas for Growth Initiative, granting import duty and Value Added Tax ( VAT) exemptions on the importation of specified gas-powered and environmentally friendly vehicles and equipment.
In a statement issued on Thursday, the Service said the incentives are aimed to support the Federal Government’s broader objectives of reducing transportation and energy costs, encouraging investment in clean energy infrastructure, expanding the adoption of alternative fuel technologies, and strengthening Nigeria’s energy security and environmental sustainability agenda.
According to the statement signed by Customs spokesman, Abdulahi Maiwada the approved exemptions include Compressed Natural Gas (CNG) fuel vehicles (100% CNG), Liquefied Petroleum Gas (LPG) fuel vehicles (100% LPG), Pure Electric Vehicles (100% Electric), Extended Range Electric Vehicles (EREVs) with a minimum pure electric range of 200 kilometres.
Others are CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorbikes certified for resale by the Federal Ministry of Finance, as well as semi-trailers configured with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
The NCS added that importers seeking to benefit from these incentives are required to obtain an Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of eligible items.
However, the NCS clarified that several categories of vehicles and related items remain ineligible for the fiscal incentives and will continue to attract Import Duty and VAT.
“The approved fiscal framework provides that some specific categories of vehicles and related items shall remain subject to the payment of Import Duty and VAT. These include Hybrid Electric Vehicles (such as Electric/Petrol and Electric/Diesel variants), dual-fuel Internal Combustion Engine (ICE) vehicles configured for CNG/Petrol or CNG/Diesel operations, luxury vehicles valued at USD 100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-driven or operated under their own mechanical drive, and spare parts of all kinds, ” the statement said.
The Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, and his management team, said it remains committed to the effective and transparent implementation of these incentives and urges all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory requirements.
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