Nigeria Customs Announces Duty, VAT Waiver for CNG, Electric Vehicle Imports

The Nigeria Customs Service (NCS) has announced the implementation of new fiscal incentives that exempt the importation of Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and certain electric vehicles from the payment of Import Duty and Value Added Tax (VAT).

The new guidelines, issued by the Federal Ministry of Finance under the Presidential Gas for Growth Initiative, are aimed at promoting cleaner energy alternatives and accelerating the adoption of sustainable transportation across Nigeria.

According to a statement signed by the National Public Relations Officer of the Service, Deputy Comptroller Abdullahi Maiwada, the incentives align with President Bola Ahmed Tinubu’s commitment to reducing energy and transportation costs while encouraging investment in clean energy infrastructure.

Under the approved fiscal framework, eligible imports include 100 per cent CNG-powered vehicles, 100 per cent LPG-powered vehicles, pure electric vehicles, and Extended Range Electric Vehicles (EREVs) with a minimum electric driving range of 200 kilometres.

The exemptions also cover CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorcycles certified for resale by the Federal Ministry of Finance, as well as semi-trailers equipped with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.

However, the Customs Service clarified that importers must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable regulatory requirements before accessing the incentives.

The Service also listed categories that remain ineligible for the tax waivers. These include hybrid electric vehicles, dual-fuel CNG/petrol and CNG/diesel vehicles, luxury vehicles valued at $100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, non-self-driven semi-trailers and flatbeds, as well as all categories of spare parts.

The NCS said the policy is designed to support the Federal Government’s efforts to expand the use of alternative fuels, strengthen Nigeria’s energy security, lower transportation costs, and advance environmental sustainability.

The Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, reaffirmed its commitment to the transparent implementation of the incentives and urged importers, licensed customs agents, and other stakeholders in the trade sector to strictly comply with the approved guidelines and regulatory requirements.