Duty, VAT exemptions apply to eligible CNG, LPG, electric vehicles as importers must obtain Finance Ministry certificate
By Suleiman Aremu | Solaremnews
The Nigeria Customs Service (NCS) has announced the implementation of additional guidelines issued by the Federal Ministry of Finance to operationalise the fiscal incentives under the Presidential Gas for Growth Initiative, reaffirming the Federal Government’s commitment to cleaner energy, sustainable transportation and economic growth.
The National Public Relations Officer of the Service, Deputy Comptroller of Customs Abdullahi Maiwada, disclosed this in a press statement issued on Friday, explaining that the guidelines are aimed at supporting President Bola Ahmed Tinubu’s drive to promote environmentally friendly transportation while accelerating the country’s transition to cleaner energy alternatives.
According to the statement, the approved fiscal incentives grant exemption from the payment of Import Duty and Value Added Tax (VAT) on the importation of specified environmentally friendly and gas-powered vehicles, equipment and components.
The Service explained that the eligible items include 100 per cent Compressed Natural Gas (CNG) fuel vehicles, 100 per cent Liquefied Petroleum Gas (LPG) fuel vehicles, pure electric vehicles, and Extended Range Electric Vehicles (EREVs) with a minimum pure electric driving range of 200 kilometres.
Other items covered under the incentive package include CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorcycles 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, however, stated that importers wishing to benefit from the incentives must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply fully with all applicable regulatory requirements governing the importation of the approved items.
The statement further clarified that certain categories of vehicles and related items are excluded from the fiscal incentives and will continue to attract Import Duty and VAT.
According to the Service, the excluded categories include Hybrid Electric Vehicles such as electric-petrol and electric-diesel variants, dual-fuel Internal Combustion Engine (ICE) vehicles designed for CNG/petrol or CNG/diesel operations, luxury vehicles valued at 100,000 US dollars and above, and CNG vehicles converted outside the factory without factory-fitted CNG capability.
Also excluded are semi-trailers and flatbeds that are not self-driven or mechanically operated, as well as all categories of spare parts.
The Customs Service noted that the implementation of the fiscal incentives aligns with the Federal Government’s broader objectives of reducing transportation and energy costs, attracting investment into clean energy infrastructure, promoting wider adoption of alternative fuel technologies, and strengthening Nigeria’s energy security alongside environmental sustainability.
The Service reaffirmed that under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, and his management team, it remains committed to ensuring the transparent and effective implementation of the approved fiscal incentives.
It also urged importers, licensed customs agents and other stakeholders within the trade ecosystem to strictly comply with the guidelines and all relevant regulatory requirements to ensure seamless implementation of the initiative.
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