By George Ozalla
The Nigeria Customs Service (NCS) has announced the implementation of additional guidelines issued by the Federal Ministry of Finance to facilitate the Fiscal Incentives under the Presidential Gas for Growth Initiative, aimed at accelerating the adoption of cleaner energy and sustainable transportation in Nigeria.
The Service said the new guidelines are in line with President Bola Ahmed Tinubu’s commitment to promoting environmentally friendly energy alternatives and reducing the country’s dependence on conventional fossil fuels in the transportation sector.
Under the approved fiscal incentives, the importation of specified gas-powered and environmentally friendly vehicles, equipment and components will enjoy exemption from the payment of Import Duty and Value Added Tax (VAT).
According to a press statement signed by the National Public Relations Officer of the Nigeria Customs Service, Deputy Comptroller of Customs Abdullahi Maiwada, the eligible categories 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.
The incentives also cover 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 fitted with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
The Customs Service, however, explained that importers seeking to benefit from the incentives must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of the approved items.
The statement further clarified that certain categories of vehicles and related items remain ineligible for the duty and VAT exemptions. These include hybrid electric vehicles powered by electric and petrol or diesel engines, dual-fuel Internal Combustion Engine (ICE) vehicles configured for CNG/Petrol or CNG/Diesel operations, luxury vehicles valued at 100,000 US dollars and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-driven, as well as all categories of spare parts.
The Service noted that the implementation of the fiscal incentives is designed to reduce transportation and energy costs, stimulate investments in clean energy infrastructure, expand the use of alternative fuel technologies and strengthen Nigeria’s energy security while advancing the country’s environmental sustainability objectives.
It reaffirmed that under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, the Service remains committed to the transparent and effective implementation of the policy.
The NCS also urged importers, licensed customs agents and other stakeholders within the trade ecosystem to strictly comply with the approved guidelines and other regulatory requirements to ensure seamless implementation of the initiative.
