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The Nigeria Customs Service (NCS) has announced additional implementation guidelines for the Federal Government's fiscal incentives under the Presidential Gas for Growth Initiative, providing further clarity on the categories of vehicles and equipment eligible for import duty and Value Added Tax (VAT) exemptions.
The Service said in a statement by Abdullahi Maiwada, Deputy Comptroller of Customs and National Public Relations Officer, that the guidelines, issued by the Federal Ministry of Finance, are part of President Bola Ahmed Tinubu's commitment to promoting cleaner energy alternatives and accelerating the adoption of sustainable transportation across the country.
Under the new framework, imports of specified environmentally friendly and gas-powered vehicles, equipment and components will enjoy exemptions from Import Duty and VAT. Eligible items include 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, pure electric vehicles, Extended Range Electric Vehicles (EREVs) with a minimum electric range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, certified gas-powered tricycles and motorcycles, as well as semi-trailers fitted with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
The Customs Service 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.
However, the Service clarified that certain categories of vehicles and related items remain excluded from the incentives and will continue to attract Import Duty and VAT. These include hybrid electric vehicles, dual-fuel petrol or diesel vehicles, luxury vehicles valued at 100,000 US dollars and above, overseas-converted CNG vehicles without factory-fitted CNG systems, non-self-driven semi-trailers and flatbeds, as well as all categories of spare parts.
According to the NCS, the fiscal incentives are designed to reduce transportation and energy costs, encourage investment in clean energy infrastructure, promote wider adoption of alternative fuel technologies, and strengthen Nigeria's energy security and environmental sustainability.
The Service reaffirmed its commitment to the transparent implementation of the policy under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, urging importers, licensed customs agents and other stakeholders in the trade ecosystem to comply fully with the approved guidelines.