Customs Unveils New Rules For Duty-Free CNG, Electric Vehicle Imports

The Nigeria Customs Service, NCS, has announced the implementation of additional guidelines for the importation of duty-free Compressed Natural Gas, CNG, and electric vehicles, as the Federal Government moves to accelerate the adoption of cleaner energy and reduce transportation costs.

The guidelines, issued by the Federal Ministry of Finance under the Presidential Gas for Growth Initiative, provide import duty and Value Added Tax, VAT, exemptions for specified environmentally friendly vehicles, equipment and components.

According to the NCS, eligible imports include 100 per cent CNG-powered vehicles, 100 per cent Liquefied Petroleum Gas, LPG, vehicles, pure electric vehicles, Extended Range Electric Vehicles, EREVs, with a minimum pure electric range of 200 kilometres, CNG and LPG conversion kits for petrol and diesel vehicles, certified 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 Service, however, 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 regulatory requirements.

It also clarified that hybrid electric vehicles, dual-fuel internal combustion engine vehicles, luxury vehicles valued at $100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, non-self-driven semi-trailers and flatbeds, as well as spare parts, remain subject to import duty and VAT.

Explaining the objective of the policy, the NCS said: “The implementation of these fiscal incentives is intended to support the Federal Government’s broader objectives of reducing transportation and energy costs, encouraging investment in clean energy infrastructure, expanding the adoption of alternative fuel technologies, and strengthening Nigeria’s energy security and environmental sustainability agenda.”

The Service reaffirmed its commitment to transparent implementation of the incentives under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, and urged importers, licensed customs agents and other stakeholders to comply with the approved guidelines.

It stated: “The Service remains committed to the effective and transparent implementation of these incentives and urges all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory requirements.”