July 31, 2026

Customs Unveils New Guidelines on Duty – Free Import of CNG, Electric Vehicles Under Presidential Gas Initiative

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Customs Unveils New Guidelines on Duty-Free Import of CNG, Electric Vehicles Under Presidential Gas Initiative

By Babatunde Aremu

The Nigeria Customs Service (NCS) has announced the implementation of additional guidelines for fiscal incentives under the Presidential Gas for Growth Initiative, aimed at promoting cleaner energy alternatives and accelerating the adoption of sustainable transportation across the country.

The announcement was made by the National Public Relations Officer of the Nigeria Customs Service, Deputy Comptroller of Customs Abdullahi Maiwada, PhD, mnipr, mniia, who said the new guidelines, issued by the Federal Ministry of Finance, are in line with President Bola Ahmed Tinubu’s commitment to expanding the use of environmentally friendly energy solutions while reducing transportation and energy costs.

According to Maiwada, the approved fiscal incentives grant exemption from the payment of Import Duty and Value Added Tax (VAT) on the importation of eligible environmentally friendly vehicles, equipment, and components.

The exempted 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 range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, certified tricycles and motorbikes, as well as semi-trailers fitted with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.

He explained that importers intending to benefit from the incentives must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable regulatory requirements before importation.

Maiwada further clarified that certain categories of vehicles and related items remain ineligible for the incentives and will continue to attract Import Duty and VAT. These include hybrid electric vehicles, dual-fuel Internal Combustion Engine (ICE) vehicles operating on CNG/Petrol or CNG/Diesel, luxury vehicles valued at USD 100,000 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.

He noted that the fiscal incentives are designed to support the Federal Government’s broader economic and environmental objectives by encouraging investment in clean energy infrastructure, promoting the use of alternative fuel technologies, strengthening national energy security, and enhancing environmental sustainability.

Maiwada reaffirmed that the Nigeria Customs Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, remains committed to the transparent and effective implementation of the policy. He urged importers, licensed customs agents, and other stakeholders within the international trade ecosystem to ensure strict compliance with the approved guidelines and regulatory requirements.