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A veteran freight forwarder, Dr. Kayode Farinto, has criticised the Federal Ministry of Finance’s implementation of the Federal Government’s zero-duty policy on electric and other clean-energy vehicles, warning that the Import Duty Exemption Certificate (IDEC) requirement could frustrate Nigeria’s green transport agenda.
Addressing journalists on Wednesday, the former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), described the zero-duty incentive for electric vehicles (EVs), compressed natural gas (CNG) vehicles, liquefied petroleum gas (LPG) vehicles and other clean-energy vehicles as a commendable policy. However, he argued that requiring importers to obtain an IDEC before accessing the concession creates unnecessary bureaucracy that could discourage imports.
Farinto urged the Minister of Finance to direct the Nigeria Customs Service to embed the zero-duty incentive directly on the Customs clearance portal, eliminating the need for separate approval.
“I process IDECs for importers and understand the procedure. Obtaining an Import Duty Exemption Certificate is rigorous and takes at least 60 days,” Farinto said.
According to him, consignments continue to incur demurrage, terminal storage and other port charges during the waiting period, eroding the financial benefit the government intended to provide.
“The government’s objective is to encourage Nigerians to import electric and other clean-energy vehicles. If importers must wait about 60 days for IDEC approval, the cargo will attract huge charges and defeat the policy’s purpose,” he said.
Farinto recalled that similar administrative bottlenecks had weakened previous government interventions, including the rice import policy, despite good intentions.
He maintained that Customs officers already have the capacity to determine eligibility through shipping documents such as the Bill of Lading and packing list, backed by physical examination of the cargo.
“There is no need for another approval process. Once the Bill of Lading identifies the cargo as an electric vehicle, Customs can verify and apply zero duty automatically on the portal,” he said.
He argued that removing the IDEC requirement would speed up cargo clearance, lower port costs and help government achieve its objective of promoting cleaner transportation.
Farinto added that the policy supports Nigeria’s environmental commitments by encouraging the use of EVs, CNG and LPG-powered vehicles, which produce significantly lower emissions than conventional automobiles.
“The policy is good; the challenge is implementation. Requiring an Import Duty Exemption Certificate is not consistent with trade facilitation. The Ministry of Finance should remove the IDEC requirement so Nigerians can truly benefit from the zero-duty policy,” he added.
