FG Removes Import Taxes on Cooking Gas, CNG, Electric Vehicles as Dealers Slash LPG Prices
- Nigeria removes import duty and VAT on cooking gas and electric vehicles to boost cleaner energy efforts
- Cooking gas prices expected to drop as dealers adjust following tax incentives for cleaner energy products
- Tax relief aims to stimulate investment and expand the adoption of alternative fuel technologies in Nigeria
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria's push towards cleaner and cheaper energy has received a major boost after the Federal Government removed import duty and Value Added Tax (VAT) on cooking gas, compressed natural gas (CNG) and electric vehicles, a move that is already reflecting in lower LPG prices announced by dealers.
The Nigeria Customs Service (NCS) unveiled the tax incentives on Thursday, July 30, 2026, under the Presidential Gas for Growth Initiative, describing the policy as part of efforts to reduce transport and energy costs while accelerating the country's transition away from petrol.
Source: Getty Images
Cooking gas prices expected to fall further
The removal of import duty and VAT is expected to reduce the cost of bringing cooking gas and related equipment into Nigeria, easing pressure on prices for households and businesses.
Industry dealers have already begun adjusting their prices downward, raising hopes that more Nigerians will enjoy cheaper cooking gas in the coming weeks if global prices remain stable, according to a report by Daily Sun.
The policy is also expected to encourage wider adoption of LPG as an alternative to firewood, kerosene and other less environmentally friendly fuels, per a BusinessDay report.
Products covered by the tax waiver
According to the Nigeria Customs Service, the incentives apply to a broad range of clean energy products and vehicles, including:
- Fully compressed natural gas (CNG)-powered vehicles
- Fully liquefied petroleum gas (LPG)-powered vehicles
- Battery electric vehicles
- Extended-range electric vehicles (EREVs) capable of travelling at least 200 kilometres on electric power
- CNG and LPG conversion kits
- Certified CNG and LPG tricycles and motorcycles approved by the Federal Ministry of Finance
- Gas-distribution semi-trailers fitted with CNG, LPG or liquefied natural gas (LNG) storage tanks
To benefit from the exemptions, importers must obtain an Import Duty Exemption Certificate (IDEC) from the Ministry of Finance and meet all regulatory requirements.
Vehicles excluded from the incentives
Not every vehicle qualifies for the tax relief.
The government said hybrid vehicles, dual-fuel CNG/petrol and CNG/diesel vehicles, luxury vehicles valued at $100,000 or more, overseas CNG conversions without factory-fitted systems, non-self-propelled trailers and vehicle spare parts will continue to attract import duty and VAT.
FG pushes cleaner energy transition
Customs said the fiscal incentives are designed to lower transportation and energy costs, stimulate investment in clean energy infrastructure, expand the adoption of alternative fuel technologies and strengthen Nigeria's energy security.
The announcement follows the Federal Government's introduction of a green tax surcharge on imported vehicles with engines above 2,000cc.
Source: Getty Images
Under that policy, vehicles with engines between 2.0 and 3.9 litres attract a two per cent levy, while those with engines of 4.0 litres and above pay a four per cent surcharge.
Mass transit buses and fully electric vehicles remain exempt.
The Customs Service urged importers, licensed customs agents and other stakeholders to comply fully with the new guidelines to enjoy the incentives.
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Cooking gas imports surge
Legit.ng earlier reported that liquefied petroleum gas (LPG), popularly known as cooking gas, imported into Nigeria surged by an astonishing 1,400 per cent to 1.5 kilotonnes per day (KT/d) in June 2026, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The figures were contained in the NMDPRA Fact Sheet for June, released on Friday, July 17, 2026, which highlighted a dramatic increase in imports aimed at addressing supply shortages and stabilising prices nationwide.
The report also revealed that Nigeria’s daily LPG consumption rose by 24 per cent, climbing to 5.1 KT/d in June from 4.1 KT/d recorded in the previous month.
Source: Legit.ng
