The Transformative Push: CNG Conversion Kits Now Duty-Free and VAT-Free in Nigeria

Nigeria announces zero customs duty and VAT on CNG conversion kits.

Discover the broader plan and its implications for sustainable transportation.

The world moves ahead with sustainable energy, and Nigeria leads with a crucial policy shift.

For green transportation, compressed natural gas (CNG) emerges as a top choice.

Recognizing its potential, the Federal Government of Nigeria is taking a progressive step to encourage the adoption of CNG.

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Why the Buzz about CNG Conversion Kits?

You might be wondering, why all this sudden emphasis on CNG?

A Big Move: Zero Customs Duty and VAT

Ajuri Ngelale, the Special Adviser to the president on Media and Publicity, dropped a significant announcement recently.

During his interview on Channels Television, he revealed that the country would now offer zero customs duty and zero VAT on CNG conversion kit imports.

Aims of the Government

The government isn’t just throwing around incentives without a clear vision. There’s a concrete strategy behind this.

Boosting Inflow of CNG Kits

The primary reason? To stimulate the inflow of CNG conversion kits into Nigeria. This move ensures the establishment of local CNG kit assembly plants.

Tackling Rising Energy Prices

Post the removal of the fuel subsidy, we’ve seen energy prices skyrocket.

This surge directly affects citizens’ wallets, especially due to increasing food and transport expenses.

However, there’s a bright side: with this fresh approach, the government seeks to stabilize and eventually decrease these prices.

The Presidential CNG Initiative (PCNGI)

Chaired by the president’s chief of staff, Femi Gbajabiamila, PCNGI ensures that mass transit systems directly benefit from the CNG solution.

This not only cuts transportation expenses but also lightens the load for low-income earners who depend on okadas and keke apps.

The Broader CNG Plan

This isn’t just a flash in the pan initiative.

The CNG plan is extensive and will be executed state by state.

However, it holds a distinctive aspect: private sector involvement will drive its implementation, all under federal regulatory oversight.

How Will This Implementation Work?

Laying the Foundation

According to Ngelale, an agreement between Nipco Gas Limited and the Nigerian National Petroleum Company Limited sets the groundwork.

This partnership centers on CNG as Nigeria’s alternative fuel source

The Future Vision: CNG-Fueled Buses

Imagine a future where mass transit systems run exclusively on CNG. That’s the aim here. And guess what? It’s not just a dream.

Plans are underway to materialize this.

It’s Not a Giveaway; It’s a Partnership

“This isn’t about federal or state handouts. It’s a meticulously crafted private sector partnership with the Federal Government,” Ngelale stated.

Initial plans involve mobilizing a whopping N200 billion to offer financing guarantees and tax incentives for upcoming CNG-powered businesses.

Fast Facts on the NNPC-NIPCO Partnership

  • 35 modern CNG stations will be constructed nationwide.
  • Includes three Mother stations.
  • Once operational, these stations can cater to over 200,000 vehicles daily.
  • Significant cost savings on fuel and transportation for Nigerians.
  • A phased rollout with 21 CNG stations for intra-city transit by early 2024.
  • 35 additional CNG stations for inter-city transit by late 2024.
  • An extra 56 stations to be set up by NNPC Retail across Nigeria.

Embracing CNG isn’t just about sustainability; it’s about economic relief for millions.

With the incentives and strategies the Federal Government has put in place, Nigeria is poised to lead in the sustainable energy race.

And with every CNG conversion kit that enters the country, we’re one step closer to a cleaner, more affordable future.

for more information do follow /


What is the primary aim behind removing customs duty and VAT on CNG kits?

To boost the inflow of CNG conversion kits and promote local assembly plants.

How does the Presidential CNG Initiative benefit the masses?

It guarantees mass transit systems adopt CNG solutions, cutting travel expenses for daily commuters, particularly those with lower incomes.

Who oversees the broader CNG plan’s execution?

While it will be executed state by state, it will be guided by private sector participation and federal authority regulations.

What’s the significance of the NNPC-NIPCO partnership?

They will set up 35 modern CNG stations across the country, significantly slashing fuel and transport expenses for Nigerians.

When can Nigerians expect the first phase of CNG stations?

The first phase, comprising 21 CNG stations, will be ready by the first quarter of 2024.

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