ABUJA, Nigeria — The Federal Government of Nigeria has announced a comprehensive exemption on import duties and Value Added Tax (VAT) for fully compressed natural gas (CNG) vehicles and pure electric vehicles (EVs).

The tax relief policy, issued via guidelines from the Federal Ministry of Finance and implemented by the Nigeria Customs Service, aims to accelerate the national transition toward clean energy alternatives.

Under the updated fiscal incentives, 100% CNG, 100% Liquefied Petroleum Gas (LPG), and 100% pure electric vehicles qualify for full duty and VAT waivers. The package also covers Extended Range Electric Vehicles (EREVs) with a minimum pure electric range of 200 kilometers, gas conversion kits, and commercial gas transport trailers.

Customs officials clarified that hybrid vehicles equipped with petrol-electric engines and dual-fuel internal combustion engines will remain subject to standard import tariffs and taxation. Importers must secure an Import Duty Exemption Certificate (IDEC) from the ministry to benefit from the scheme.

The National Public Relations Officer for the Nigeria Customs Service confirmed that the directive aligns directly with President Bola Ahmed Tinubu’s Presidential Gas for Growth Initiative.

The government expects the elimination of import duties to lower acquisition costs for transport operators, encouraging widespread adoption among commercial fleet managers and private motorists.

Energy stakeholders have welcomed the decision as a decisive policy shift, predicting increased private sector investments in regional charging networks and gas refilling infrastructure nationwide.