The Nigeria Customs Service (NCS) has issued additional guidelines for implementing fiscal incentives under the Presidential Gas for Growth Initiative, clarifying the categories of vehicles and equipment eligible for import duty and Value Added Tax (VAT) exemptions.
The Service said the new guidelines, issued by the Federal Ministry of Finance, are aimed at promoting cleaner energy alternatives, accelerating the adoption of sustainable transportation and supporting the Federal Government’s energy transition agenda.
The clarification was contained in a statement issued on Friday, by the National Public Relations Officer of the NCS, Deputy Comptroller Abdullahi Maiwada.
According to the guidelines, fully Compressed Natural Gas (CNG) vehicles, 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, approved motorcycles and motorbikes, as well as semi-trailers fitted with CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution, will enjoy exemptions from import duty and VAT.
However, the incentives will not apply to hybrid electric vehicles, dual-fuel internal combustion engine vehicles powered by CNG and petrol or diesel, luxury vehicles valued at $100,000 and above, CNG vehicles converted overseas without factory-fitted systems, ordinary semi-trailers and flatbeds, or spare parts.
The Customs Service said importers seeking to benefit from the incentives must obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and comply with all applicable import regulations.
According to the Service, the incentives are designed to reduce transportation and energy costs, encourage investment in clean energy infrastructure, expand the adoption of alternative fuel technologies and strengthen Nigeria’s energy security and environmental sustainability.
The NCS said it remained committed to the transparent implementation of the policy and urged importers, licensed customs agents and other stakeholders to comply with the guidelines.