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The Federal Government has reaffirmed its commitment to accelerating Nigeria’s transition to cleaner transportation by granting Customs duty and Value Added Tax (VAT) exemptions on imported electric vehicles (EVs), gas-powered vehicles and related equipment.
The fiscal incentive, which forms part of the administration’s broader energy transition and economic reform agenda, is expected to reduce the cost of acquiring environmentally friendly vehicles, encourage private sector investment and expand the country’s clean mobility ecosystem.
Under the policy, eligible electric vehicles, compressed natural gas (CNG)-powered vehicles and critical components, including charging infrastructure and gas conversion equipment, will enjoy exemptions from import duties and VAT, making them more affordable for businesses and consumers.
The initiative aligns with the Federal Government’s efforts to reduce dependence on fossil fuels, lower transportation costs and cut carbon emissions while promoting the adoption of alternative energy sources in the transport sector.
Government officials said the incentives would also stimulate local investments in electric vehicle assembly, gas conversion centres and charging infrastructure, creating jobs and strengthening Nigeria’s automotive industry.
The policy complements the Presidential Initiative on Compressed Natural Gas (Pi-CNG), which has been expanded to include electric vehicles as part of efforts to provide cleaner and more affordable transportation options across the country.
Industry stakeholders have welcomed the development, describing it as a significant step towards making electric and gas-powered vehicles more accessible to Nigerians. They, however, stressed the need for adequate charging stations, reliable gas infrastructure and stable electricity supply to maximise the benefits of the incentives.
The latest fiscal measures are also expected to support the Federal Government’s broader economic objectives of easing inflationary pressures, reducing transport costs and encouraging investments in sustainable energy solutions. Recent tariff adjustments have similarly lowered import duties on vehicles as part of the 2026 fiscal policy measures.
