The Federal Government has approved the exemption of Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and certain electric vehicles from the payment of Customs duty and Value Added Tax (VAT) as part of efforts to accelerate Nigeria’s transition to cleaner energy and sustainable transportation.
The Nigeria Customs Service (NCS) announced the implementation of additional guidelines issued by the Federal Ministry of Finance under the Presidential Gas for Growth Initiative –a key component of President Bola Ahmed Tinubu’s drive to promote cleaner energy alternatives and expand the adoption of environmentally friendly transportation solutions.
Under the approved fiscal incentives, the importation of specified gas-powered and environmentally friendly vehicles, equipment, and components will enjoy exemption from both Import Duty and VAT.
Eligible items 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) with a minimum pure electric driving range of 200 kilometres, as well as CNG and LPG conversion kits for petrol and diesel-powered vehicles.
The incentives also cover tricycles and motorcycles certified for resale by the Federal Ministry of Finance, in addition to semi-trailers equipped with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks designed for gas distribution.
To benefit from the incentives, importers 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 products.
However, the fiscal framework excludes certain categories of vehicles and equipment from the duty and VAT waivers.
These include hybrid electric vehicles such as electric-petrol and electric-diesel variants, dual-fuel internal combustion engine vehicles configured for CNG/petrol or CNG/diesel operations, luxury vehicles valued at $100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-propelled, as well as spare parts of all categories.
According to the Nigeria Customs Service, the incentives are aimed at supporting 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 while advancing environmental sustainability.
The Service reaffirmed that under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, it remains committed to the transparent and effective implementation of the fiscal incentives.
The NCS also urged importers, licensed customs agents and other stakeholders within the trade ecosystem to comply strictly with the approved guidelines and all relevant regulatory requirements in order to benefit from the policy.
