The Nigeria Customs Service (NCS) has announced the implementation of additional guidelines issued by the Federal Ministry of Finance for fiscal incentives under the Presidential Gas for Growth Initiative, providing import duty and Value Added Tax (VAT) exemptions for specified gas-powered and environmentally friendly vehicles and equipment.
The new guidelines, which take effect under the Federal Government’s clean energy and transportation programme, are aimed at accelerating the adoption of alternative fuel technologies and reducing the cost of transportation and energy across the country.
In a statement issued on Friday by the National Public Relations Officer of the NCS, Deputy Comptroller Abdullahi Maiwada, the Service said eligible imports would 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 range of 200 kilometres.
The exemptions also cover CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorbikes certified for resale by the Ministry of Finance, and semi-trailers fitted with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
However, the Customs Service said 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 relevant regulatory requirements governing the importation of eligible items.
The NCS clarified that several categories of vehicles and related items would remain subject to import duty and VAT. These include hybrid electric vehicles, dual-fuel CNG/petrol and CNG/diesel vehicles, luxury vehicles valued at $100,000 and above, CNG vehicles converted abroad without factory-fitted CNG capability, non-self-driven semi-trailers and flatbeds, as well as spare parts.
According to the Service, the fiscal incentives are designed to encourage investment in clean energy infrastructure, promote the use of gas-powered transportation, reduce transportation and energy costs, and strengthen Nigeria’s energy security and environmental sustainability objectives.
The NCS said it remained committed to the transparent and effective implementation of the initiative 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 strictly with the approved guidelines.
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