Customs Exempts CNG, LPG, EVs from Import Duty and VAT

The Nigeria Customs Service (NCS) has announced the exemption of Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Electric Vehicles (EVs) from 100 percent payment of import duty and Value Added Tax (VAT). This decision was made under the additional guidelines of the Fiscal Incentives as part of the Presidential Gas for Growth Initiative, issued on a Friday in Abuja.

Abdullahi Maiwada, the National Public Relations Officer of NCS, stated that the exemption applies to specified environmentally friendly vehicles and equipment, including 100 percent CNG and LPG fuel vehicles, Pure Electric Vehicles, Extended Range Electric Vehicles (EREVs) with a minimum range of 200 kilometers, and certified conversion kits. Importers must secure an Import Duty Exemption Certificate from the Federal Ministry of Finance and adhere to all regulatory requirements.

Certain vehicles, including Hybrid Electric Vehicles and luxury vehicles valued over USD 100,000, remain subject to import duties and VAT. This initiative aligns with President Bola Ahmed Tinubu's commitment to promoting cleaner energy alternatives.