FG Grants Customs Duty, VAT Exemptions on Electric, Gas-Powered Vehicle Imports

By Frontline Reporters

The Federal Government has approved sweeping fiscal incentives for the importation of electric and gas-powered vehicles, granting exemptions from Import Duty and Value Added Tax (VAT) as part of efforts to accelerate Nigeria’s transition to cleaner energy and promote sustainable transportation.

The Nigeria Customs Service (NCS) announced the development on Friday, saying the incentives are in line with President Bola Ahmed Tinubu’s commitment to expanding the use of environmentally friendly energy sources through the Presidential Gas for Growth Initiative.

According to a statement signed by the National Public Relations Officer of the Service, Deputy Comptroller Abdullahi Maiwada, the new guidelines, issued by the Federal Ministry of Finance, provide duty and VAT waivers for the importation of specified clean-energy vehicles, equipment and components.

Eligible items include 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, pure Electric Vehicles (EVs), Extended Range Electric Vehicles (EREVs) with a minimum electric driving range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, certified tricycles and motorcycles powered by gas, as well as semi-trailers equipped 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 importation regulations before qualifying for the exemptions.

However, the government clarified that certain categories of vehicles and related products remain ineligible for the fiscal incentives. These include hybrid electric vehicles (Electric/Petrol and Electric/Diesel), dual-fuel Internal Combustion Engine (ICE) 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 systems, semi-trailers and flatbeds that are not self-propelled, as well as all categories of spare parts, which will continue to attract the applicable Import Duty and VAT.

Maiwada said the initiative is designed to reduce transportation and energy costs, stimulate investment in clean energy infrastructure, promote wider adoption of alternative fuel technologies, strengthen Nigeria’s energy security, and support the country’s environmental sustainability objectives.

He reaffirmed the commitment of the Nigeria Customs Service, under the leadership of Comptroller-General of Customs, Bashir Adewale Adeniyi, to ensuring the transparent and effective implementation of the policy.

“The Service remains committed to the effective and transparent implementation of these incentives and urges all stakeholders, importers, licensed customs agents, and operators within the trade ecosystem to comply strictly with the approved guidelines and regulatory requirements,” the statement added.