The Federal Government has approved a waiver on import duty and Value Added Tax (VAT) for fully Compressed Natural Gas (CNG) and electric vehicles. The move is expected to make these vehicles more affordable for businesses and individuals while encouraging the transition to cleaner energy.

What changed?

Importers of eligible fully electric and CNG vehicles will no longer pay import duty and VAT on those vehicles.

This means the cost of bringing qualifying vehicles into Nigeria could reduce, making them more accessible to transport operators, logistics companies, fleet owners, and private buyers.

Why is the government doing this?

The policy is designed to:

* Encourage the adoption of cleaner transportation.

* Reduce dependence on petrol and diesel.

* Support Nigeria’s energy transition goals.

* Lower the cost of environmentally friendly vehicles.

Does this mean electric vehicles are completely tax free?

No.

The waiver only applies to import duty and VAT on eligible vehicles. Other charges and regulatory fees may still apply depending on the import process and the type of vehicle.

Understanding which taxes have been removed and which still apply is important before making any purchasing or import decisions.

Why this matters

Tax policies are constantly changing, and they can directly affect businesses and individuals.

Whether it’s a new VAT rule, tax relief, or an exemption like this, staying informed can help you make better financial decisions and remain compliant.

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