The Nigeria Customs Service (NCS) has announced the implementation of additional guidelines issued by the Federal Ministry of Finance to operationalise fiscal incentives under President Bola Ahmed Tinubu’s Presidential Gas for Growth Initiative.
The new measures, aimed at promoting cleaner energy alternatives and accelerating the adoption of sustainable transportation, provide exemptions from Import Duty and Value Added Tax (VAT) for the importation of specified environmentally friendly and gas-powered vehicles, equipment, and components.
According to a statement issued on Friday by the National Public Relations Officer of the Service, Deputy Comptroller of Customs Abdullahi Maiwada, the approved categories eligible for the incentives include 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, pure electric vehicles, and Extended Range Electric Vehicles (EREVs) with a minimum pure electric driving range of 200 kilometres.
Also covered under the policy are 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 fitted with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
The Service explained that importers seeking to benefit from the incentives must 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.
However, the statement clarified that certain categories of vehicles and related items remain ineligible for the exemptions and will continue to attract Import Duty and VAT.
These include 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, non-self-propelled semi-trailers and flatbeds, as well as spare parts of all kinds.
The Nigeria Customs Service said the implementation of the fiscal incentives is designed to support the Federal Government’s efforts to reduce transportation and energy costs, attract investment in clean energy infrastructure, expand the use of alternative fuel technologies, and strengthen Nigeria’s energy security and environmental sustainability.
The Service reaffirmed its commitment to the transparent and effective implementation of the policy under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, and urged importers, licensed customs agents, and other stakeholders in the trade ecosystem to comply fully with the approved guidelines and regulatory requirements.