By Vicky Attah, Correspondent
The Nigeria Customs Service (NCS) has issued additional guidelines for the implementation of fiscal incentives covering the importation of gas-powered and electric vehicles, conversion kits and other specified equipment under the Federal Government’s Presidential Gas for Growth Initiative.
In a statement issued on Friday by the Deputy Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, PhD, the Service said the new guidelines issued by the Federal Ministry of Finance would exempt eligible vehicles, equipment and components from Import Duty and Value Added Tax (VAT), as part of efforts to promote cleaner energy alternatives and encourage the adoption of sustainable transportation solutions.
Under the new guidelines issued by the Federal Ministry of Finance, eligible vehicles, equipment and components will be exempted from Import Duty and Value Added Tax (VAT), as part of efforts to promote cleaner energy alternatives and encourage the adoption of sustainable transportation solutions.
The approved categories include vehicles powered entirely by Compressed Natural Gas (CNG), those running solely on Liquefied Petroleum Gas (LPG), and pure electric vehicles.
Also covered are Extended Range Electric Vehicles (EREVs) with a minimum pure electric range of 200 kilometres, as well as CNG and LPG conversion kits designed for petrol and diesel vehicles.
Tricycles and motorbikes certified for resale by the Federal Ministry of Finance are also eligible for the incentives, alongside semi-trailers configured with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
However, importers seeking to benefit from the exemptions must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and meet all other regulatory requirements applicable to the importation of the approved items.
The Customs Service said the fiscal framework does not cover all categories of alternative-energy vehicles and related products, with certain items remaining liable to Import Duty and VAT.
Among the excluded categories are Hybrid Electric Vehicles, including Electric/Petrol and Electric/Diesel variants, as well as dual-fuel Internal Combustion Engine vehicles configured to operate with CNG/Petrol or CNG/Diesel.
Luxury vehicles valued at $100,000 and above are also excluded from the incentives, while CNG vehicles converted overseas without factory-fitted CNG capability will remain subject to the applicable duties and taxes.
The guidelines similarly exclude semi-trailers and flatbeds that are not self-driven or operated under their own mechanical drive, while spare parts of all kinds are not covered by the fiscal incentives.
The NCS said the implementation of the incentives forms part of the Federal Government’s broader efforts to reduce transportation and energy costs, attract investment in clean-energy infrastructure and accelerate the adoption of alternative-fuel technologies.
It added that the policy was also designed to strengthen Nigeria’s energy security and support the country’s environmental sustainability objectives.
The Service, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, said it remained committed to implementing the incentives effectively and transparently.
It urged importers, licensed customs agents and other stakeholders in the trade ecosystem to strictly comply with the approved guidelines and all applicable regulatory requirements.
The additional guidelines followed President Bola Ahmed Tinubu’s commitment to promoting cleaner energy alternatives and expanding sustainable transportation solutions under the Presidential Gas for Growth Initiative.
