The Federal Government has approved import duty and Value Added Tax (VAT) exemption for fully Compressed Natural Gas (CNG)-powered vehicles, Liquefied Petroleum Gas (LPG) vehicles, pure electric vehicles, tricycles and other environmentally friendly and gas-powered vehicles, equipment and components under the Presidential Gas for Growth Initiative.

The Nigeria Customs Service (NCS), which announced the implementation of additional guidelines for the fiscal incentives on Friday, said the policy, issued by the Federal Ministry of Finance, is in furtherance of President Bola Ahmed Tinubu’s commitment to accelerating the adoption of cleaner energy technologies alternatives and supporting the government’s drive towards sustainable transportation.

In a statement signed by the National Public Relations Officer of NCS, the approved categories eligible for the tax incentives include 100 per cent CNG vehicles, 100 per cent LPG vehicles, 100 per cent pure electric vehicles, and Extended Range Electric Vehicles (EREVs) with a minimum pure electric driving range of 200 kilometres.

Also covered are CNG and LPG conversion kits for petrol and diesel vehicles, tricycles and motorbikes certified for resale by the Federal Ministry of Finance, as well as semi-trailers configured with skid-mounted CNG, LPG, and Liquefied Natural Gas (LNG) storage tanks for gas distribution.

The Service also stated that importers seeking to benefit from the incentives must obtain an Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance and comply with all applicable regulatory requirements governing the importation of eligible items.

However, the NCS clarified that some specific categories of vehicles and related items shall remain subject to the payment of Import Duty and VAT, which include hybrid electric vehicles, including electric/petrol and electric/diesel variants, dual-fuel internal combustion engine vehicles configured for CNG/petrol or CNG/diesel operations.

Others are luxury vehicles valued at $100,000 and above, CNG vehicles converted overseas without factory-fitted CNG capability, semi-trailers and flatbeds that are not self-driven or operated under their own mechanical drive, and all categories of spare parts remain subject to the payment of import duty and VAT.

“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 stated.

The Service noted that it remains committed to the effective and transparent implementation of the policy under the leadership of the Comptroller-General of Customs, Dr Bashir Adeniyi.

The NCS further urged importers, licensed customs agents and other stakeholders operating within the trade ecosystem to comply strictly with the approved guidelines and regulatory requirements.