Nigeria Customs Rolls Out Fresh Guidelines for Duty, VAT Waivers on CNG, Electric Vehicle Imports

The Nigeria Customs Service (NCS) has issued additional implementation guidelines for the Federal Government’s fiscal incentives under the Presidential Gas for Growth Initiative, providing further clarity on the categories of vehicles and equipment that qualify for import duty and Value Added Tax (VAT) exemptions.

The new guidelines, announced on Friday, are aimed at accelerating Nigeria’s transition to cleaner energy, encouraging investment in alternative fuel technologies and supporting the Federal Government’s drive towards sustainable transportation.

The Service said the latest measures were introduced in line with President Bola Ahmed Tinubu’s commitment to promoting cleaner energy alternatives and reducing the country’s dependence on conventional fossil fuels in the transport sector.

According to the Customs, specified environmentally friendly vehicles, gas-powered equipment and related components will now enjoy exemption from both import duty and VAT under the approved fiscal incentives.

The categories eligible for the incentives include 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, fully electric vehicles, Extended Range Electric Vehicles (EREVs) capable of travelling a minimum of 200 kilometres on pure electric power, CNG and LPG conversion kits designed for petrol and diesel vehicles, tricycles and motorbikes certified for resale by the Federal Ministry of Finance, as well as semi-trailers fitted with skid-mounted Compressed Natural Gas, Liquefied Petroleum Gas and Liquefied Natural Gas (LNG) storage tanks intended for gas distribution.

The Service, however, stressed that importers wishing to benefit from the tax incentives must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance.

It added that beneficiaries must also comply with all existing regulatory requirements governing the importation of the approved vehicles, equipment and components.

The Customs further clarified that not every vehicle powered partly by alternative energy sources would qualify for the exemptions.

Under the fiscal framework, Hybrid Electric Vehicles, including petrol-electric and diesel-electric models, remain liable to the payment of import duty and VAT.

Similarly, dual-fuel Internal Combustion Engine (ICE) vehicles configured to run on CNG and petrol or CNG and diesel will not benefit from the incentives.

Other excluded categories include luxury vehicles valued at 100,000 US dollars and above, CNG vehicles converted outside Nigeria without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-propelled or mechanically driven, as well as spare parts of every description.

The Customs explained that the fiscal incentives form part of the Federal Government’s wider economic and environmental reforms aimed at making transportation more affordable, expanding clean energy infrastructure and enhancing Nigeria’s long-term energy security.

According to the Service, the incentives are also expected to stimulate greater private sector investment in alternative fuel technologies while reducing transportation and energy costs for businesses and consumers.

In a statement signed by the National Public Relations Officer of the Service, Deputy Comptroller of Customs Abdullahi Maiwada, on behalf of the Comptroller-General of Customs, Bashir Adewale Adeniyi, the agency reaffirmed its commitment to ensuring transparent and effective implementation of the initiative.

The statement said: “The implementation of these fiscal incentives is intended 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.”

The Service further assured stakeholders that it would continue to provide the necessary guidance to facilitate compliance with the policy.

“The Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR and his management team, 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,” the statement added.

The latest guidelines are expected to provide greater certainty for importers, vehicle dealers, logistics operators and investors seeking to take advantage of the Federal Government’s clean energy incentives while advancing Nigeria’s transition to a gas-powered and environmentally sustainable transport system.