Vehicles running fully on compressed natural gas, liquefied petroleum gas or electric power will now enter Nigeria free of import duty and Value Added Tax, following approval from the Federal Ministry of Finance under the Presidential Gas for Growth Initiative.
Nigeria Customs Service disclosed the waiver on Thursday, positioning it as the latest step in the government's push to cut the cost of alternative fuel vehicles and accelerate the country's shift away from petrol powered transport.
The exemption covers vehicles running entirely on CNG or LPG, battery electric vehicles, and Extended Range Electric Vehicles able to travel at least 200 kilometres on battery power alone. It also extends to CNG and LPG conversion kits, certified tricycles and motorcycles, and gas distribution semi trailers fitted with CNG, LPG or LNG storage tanks.
Not every vehicle qualifies. Hybrids remain excluded, along with dual fuel vehicles still running partly on petrol or diesel, vehicles priced at $100,000 or above, CNG conversions carried out abroad without factory fitting, non self propelled trailers, and spare parts, all of which stay liable for standard import duty and VAT.
Importers must first obtain an Import Duty Exemption Certificate from the Ministry of Finance and meet other regulatory conditions before the waiver takes effect.
The move follows a green tax surcharge introduced on 1 July 2026, which added a 2 per cent levy on imported vehicles with engines between 2,000cc and 3,999cc and a 4 per cent levy on those at 4,000cc and above, while sparing mass transit buses and electric vehicles.
Customs said the incentives are designed to lower transportation and energy costs, draw investment into clean energy infrastructure, expand adoption of alternative fuel vehicles, and strengthen the country's energy security and environmental sustainability agenda. The Service urged importers and licensed customs agents to comply fully with the applicable guidelines.