Industry stakeholders have lamented that the multiple approvals, cumbersome administrative procedures, time and costs associated with obtaining the Import Duty Exemption Certificates (IDEC) are frustrating the Federal Government’s zero-import-duty policy on electric vehicles (EVs) and other clean-energy vehicles as well as the country’s entire green transport ambition.

The Guardian learnt that it takes a minimum of 60 days for importers to get the requirements needed to obtain an IDEC and approval from the Federal Ministry of Finance before the Nigeria Customs Service (NCS) can grant the duty exemption.

According to stakeholders, this process is undermining the government’s Ease of Doing Business initiative and the zero-duty policy covering electric, compressed natural gas (CNG), liquefied petroleum gas (LPG) and other clean-energy vehicles.

Former Acting National President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the government’s incentives to encourage clean-energy transportation have been met with major bureaucratic obstacles, especially as the requirement for obtaining it subjects investors to a process capable of keeping their consignments at the port for months.

Farinto revealed that he personally handles IDEC applications for importers and knows what the process entails.

“I am one of those processing IDECs for importers. It takes a minimum of 60 days before approval is granted. Subjecting importers to obtaining an Import Duty Exemption Certificate before enjoying zero duty is rigorous and time-consuming,” he said.

He warned that the time required to process the certificate could wipe out the financial benefit of the government’s duty waiver, as consignments would continue to accumulate demurrage, storage and other port-related charges while importers wait for approval.

Farinto said the government’s intention is to encourage people to import electric and other clean-energy vehicles, but if importers must wait for about 60 days to obtain an IDEC, the cargo would have attracted huge demurrage and terminal charges.

He urged the Federal Ministry of Finance to remove the requirement for a separate IDEC for the affected category of vehicles and instead direct the Nigeria Customs Service to incorporate the zero-duty concession directly into its clearance platform.

Farinto argued that the requirement was unnecessary because Customs already has the capacity to determine whether a vehicle qualifies for the concession through the import documentation and physical examination of the cargo.

He specifically mentioned the Bill of Lading, packing list and other shipping documents as sufficient tools for Customs to establish the nature of the imported vehicle.

Farinto said eliminating the additional approval would reduce clearance time, lower port costs and make the government’s clean-energy policy more attractive to importers.

Also reacting, a freight forwarding stakeholder, Stanley Ezenga, lamented that the IDEC regime had become a barrier to trade facilitation, arguing that the additional administrative requirement makes it more difficult for legitimate importers to take advantage of government incentives.

He expressed stakeholders’ concern that the country’s trade policies are often weakened at the implementation stage, with multiple approvals and administrative procedures adding cost and uncertainty to cargo clearance.

Ezenga stated that for the freight forwarding community, the central concern is not the principle of government verification but the time and cost associated with obtaining the certificate.

He said making importers pass through another approval process before Customs can recognise the concession runs contrary to the Federal Government’s Ease of Doing Business policy, particularly at a time when the government is seeking to reduce cargo clearance time and improve the competitiveness of the country’s ports.

Meanwhile, the General Secretary, Car Dealers Association, Theo Olaniran, said although the association had yet to see the implementation of the electric vehicle zero-duty policy in practical terms, more concerns should be on the readiness of the country’s supporting infrastructure, particularly electricity and charging facilities, to support widespread adoption of electric vehicles.

According to him, beyond announcing zero import duty, the government must also address the infrastructure required to make electric vehicles commercially viable and useful to Nigerians.

He also questioned whether sufficient charging alternative energy sources such as solar power were available across the country to support EV users.

Olaniran said the government’s policy would require corresponding infrastructure and practical measures before the industry could properly assess its impact.