Nigeria Customs Service Exempts Certain Vehicles from Import Duties

The Nigeria Customs Service (NCS) has introduced new guidelines to exempt certain environmentally friendly vehicles and equipment from paying import duty and Value Added Tax (VAT). The exemptions are part of the Presidential Gas for Growth Initiative, aimed at promoting cleaner energy alternatives and sustainable transportation solutions.

The NCS has identified several categories of vehicles that will benefit from these exemptions, including Compressed Natural Gas (CNG) fuel vehicles, Liquefied Petroleum Gas (LPG) fuel vehicles, Pure Electric Vehicles, and Extended Range Electric Vehicles with a minimum pure electric range of 200 kilometres. CNG and LPG conversion kits for petrol and diesel vehicles are also included in the exemptions.

Importers seeking to benefit from these 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. The NCS has warned that some categories of vehicles, including Hybrid Electric Vehicles, luxury vehicles valued at USD 100,000 and above, and CNG vehicles converted overseas without factory-fitted CNG capability, will remain subject to the payment of Import Duty and VAT.