By Eshioromeh Sebastian
The Federal Government has exempted specified clean energy vehicles and related equipment from Import Duty and Value Added Tax (VAT) under the Presidential Gas for Growth Initiative, the Nigeria Customs Service (NCS) has announced.
The directive, which takes immediate effect, is part of President Bola Ahmed Tinubu’s broader strategy to promote cleaner energy alternatives and accelerate the adoption of sustainable transportation solutions across the country.
In a statement issued in Abuja, the NCS National Public Relations Officer, Deputy Comptroller Abdullahi Maiwada, PhD, said the implementation follows additional guidelines issued by the Federal Ministry of Finance for the fiscal incentives under the initiative.
“Pursuant to the approved fiscal incentives, the importation of specified environmentally friendly and gas-powered vehicles, equipment, and components shall enjoy exemption from the payment of Import Duty and Value Added Tax (VAT),” the statement read.
According to the NCS, the approved fiscal incentives cover the importation of 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, 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 Customs Service, however, clarified that certain categories would remain subject to Import Duty and VAT payments. These include Hybrid Electric Vehicles, 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, and spare parts of all kinds.
“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,” the statement added.
The NCS said the implementation of the 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, 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,” the statement said.
The Service urged all stakeholders, including 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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