Nigeria Grants Tax Breaks for Cleaner Energy Vehicles

The Federal Government of Nigeria has introduced fiscal incentives for the importation of environmentally friendly vehicles and equipment under the Presidential Gas for Growth Initiative.

The policy, announced by the Nigeria Customs Service (NCS), grants import duty and Value Added Tax (VAT) exemptions 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.

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.

The NCS 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.