Customs issues additional guidelines on fiscal incentives under presidential gas for growth initiative
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Customs issues additional guidelines on fiscal incentives under presidential gas for growth initiative
By Onu Okorie
Nigeria Customs Service NCS has announced the implementation of additional guidelines issued by the Federal Ministry of Finance for the Fiscal Incentives under the Presidential Gas for Growth Initiative, in furtherance of President Bola Ahmed Tinubu’s commitment to promoting cleaner energy alternatives and enhancing the adoption of sustainable transportation solutions.
This was disclosed in a press release signed by the Deputy Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, PhD, on behalf of the Comptroller-General of Customs.
According to the statement, pursuant to the approved fiscal incentives, the importation of specified environmentally friendly and gas-powered vehicles, equipment, and components will enjoy exemption from the payment of Import Duty and Value Added Tax (VAT). The approved categories include Compressed Natural Gas (CNG) fuel vehicles (100% CNG), Liquefied Petroleum Gas (LPG) fuel vehicles (100% LPG), and Pure Electric Vehicles (100% Electric).
Others are Extended Range Electric Vehicles (EREVs) with a minimum pure electric range of 200 kilometres, 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 Customs Service further disclosed that importers seeking to benefit from the incentives are required to 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 approved fiscal framework provides that some specific categories of vehicles and related items will remain subject to the payment of Import Duty and VAT. These include Hybrid Electric Vehicles (such as Electric/Petrol and Electric/Diesel variants), dual-fuel Internal Combustion Engine (ICE) vehicles configured for CNG/Petrol or CNG/Diesel operations, and luxury vehicles valued at USD 100,000 and above.
Others exempted from the incentive are 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 spare parts of all kinds.
The NCS explained that the implementation of the 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, under the leadership of the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, and his management team, reaffirmed its commitment to the effective and transparent implementation of the incentives, and urged all stakeholders, importers, licensed customs agents, and other operators within the trade ecosystem to ensure strict compliance with the applicable guidelines and regulatory compliance.
