The Nigeria Customs Service (NCS) has announced additional guidelines for implementing fiscal incentives under the Presidential Gas for Growth Initiative, aimed at promoting cleaner energy, encouraging investment in alternative fuel technologies and reducing transportation costs across Nigeria.
The new directives, issued by the Federal Ministry of Finance and announced by the NCS on Friday, are part of the Federal Government’s efforts to accelerate the adoption of environmentally friendly vehicles and strengthen the country’s transition to cleaner energy sources.
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Under the revised framework, eligible imports will enjoy exemption from both Import Duty and Value Added Tax (VAT).
The approved items include 100 per cent Compressed Natural Gas (CNG) vehicles, 100 per cent Liquefied Petroleum Gas (LPG) vehicles, fully electric vehicles, Extended Range Electric Vehicles (EREVs) capable of travelling at least 200 kilometres on electric power alone, CNG and LPG conversion kits for petrol and diesel vehicles, certified gas-powered tricycles and motorcycles, as well as specialised semi-trailers equipped with skid-mounted CNG, LPG and Liquefied Natural Gas (LNG) storage tanks for gas distribution.
The 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 relevant regulatory requirements before their consignments can qualify for the waivers.
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However, the guidelines exclude several categories of vehicles and equipment from the tax reliefs.
These include hybrid electric vehicles, dual-fuel petrol or diesel vehicles configured to run on CNG, luxury vehicles valued at 100,000 US dollars and above, overseas-converted CNG vehicles without factory-fitted systems, non-self-propelled semi-trailers and flatbeds, as well as all categories of spare parts.
According to the NCS, the initiative is expected to lower transportation and energy costs, attract investment in clean energy infrastructure, improve energy security and support Nigeria’s environmental sustainability objectives.
The Service reaffirmed its commitment to ensuring transparent implementation of the policy under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi.
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“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 statement said.
The NCS also urged importers, licensed customs agents and other stakeholders in the international trade sector to strictly adhere to the approved guidelines and all applicable regulatory requirements to ensure seamless implementation of the incentives.
