By Oscar Okhifo
The Nigeria Customs Service (NCS) has announced the implementation of a broad package of fiscal incentives, including import duty waivers on equipment for Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Electric Vehicles (EVs), in a move aimed at accelerating Nigeria’s transition to cleaner energy and reducing transportation costs.
The incentives, approved by the Federal Government under President Bola Tinubu’s Presidential Gas for Growth Initiative, are designed to promote investment in gas infrastructure, encourage the adoption of cleaner energy technologies, and support the country’s economic diversification agenda.
Announcing the policy in a statement on Friday, the National Public Relations Officer of the Service, Assistant Comptroller Abdullahi Maiwada, said the initiative reflects the Federal Government’s commitment to expanding access to affordable and sustainable energy solutions across the country.
“The Nigeria Customs Service wishes to inform stakeholders and the general public of the implementation of fiscal incentives approved by the Federal Government to support the Presidential Gas for Growth Initiative and Nigeria’s transition to cleaner energy,” the statement said.
According to the Service, the incentives include a zero per cent import duty on specified machinery, equipment, spare parts, and components used for CNG and LPG projects. Electric Vehicles and their components will also enjoy duty-free importation.
“The approved incentives cover zero per cent import duty on specified machinery, equipment, spare parts and components for CNG and LPG projects, as well as Electric Vehicles and their components,” the statement added.
In addition to the import duty waivers, the Federal Government has approved Value Added Tax (VAT) exemptions on a wide range of gas-related products and services. These include feed gas for processed gas, imported LPG, CNG and LPG conversion kits, installation services, refuelling infrastructure, and Electric Vehicles and their associated components.
The NCS explained that importers seeking to benefit from the incentives must first obtain an Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance, supported by a recommendation from the Office of the Special Adviser to the President on Energy, before the waivers can be processed.
The Service also disclosed that LPG imports under the approved Harmonised System (HS) codes are exempt from both import duty and VAT. In addition, debit notes previously issued to petroleum marketers that imported LPG under the affected HS codes from August 26, 2019, will be withdrawn in line with existing government approvals.
“The Service remains committed to the seamless implementation of these incentives and urges all eligible stakeholders to comply with the stipulated guidelines to enjoy the benefits provided by the policy,” Maiwada said.
He added that the incentives are expected to reduce the cost of clean energy technologies, encourage the wider adoption of gas-powered and electric vehicles, attract investment into Nigeria’s gas value chain, create jobs, and strengthen the country’s energy security.
The policy comes at a time when the cost of cooking gas has risen sharply, placing additional pressure on millions of Nigerian households.
The sustained increase in LPG prices has forced many families, including those in urban areas, to revert to firewood and charcoal for cooking. This trend has heightened concerns among environmental and public health experts, who warn that increased reliance on solid fuels could worsen deforestation, indoor air pollution, and related health risks.
While the fiscal incentives are expected to make clean energy technologies more affordable and stimulate investment in the sector, their impact on the retail price of cooking gas and the pace of adoption of cleaner energy alternatives will depend largely on effective implementation and market response.
For millions of Nigerians grappling with rising energy costs, the success of the policy will ultimately be judged by the extent to which it delivers tangible relief to households and businesses.