
Navigating the Green Frontier: Challenges Faced by Stakeholders in Electric Vehicle (2, 3, and 4-Wheeler) Importation via Nigeria Customs Service
Executive Summary
Nigeria stands at a pivotal juncture in its pursuit of sustainable transportation, driven by ambitious commitments to transition towards electric mobility. Despite a clear national vision for zero-emission vehicles (ZEVs) and a burgeoning local manufacturing presence, the importation of electric vehicles (EVs), encompassing 2, 3, and 4-wheelers, faces significant impediments within the operational framework of the Nigeria Customs Service (NCS). This report meticulously examines the multifaceted challenges encountered by stakeholders, including policy ambiguities, contentious valuation practices, and persistent operational bottlenecks at Nigerian ports.
The analysis reveals a critical disconnect between the government’s declared intent to foster EV adoption and the practical realities of import procedures. While Electric Vehicles and their components benefit from Value Added Tax (VAT) exemptions and exclusion from certain “Green Taxes,” the absence of clearly defined import duty rates and a transparent application process for existing incentives creates substantial financial uncertainty for importers. Furthermore, the Vehicle Identification Number (VIN) valuation system, intended to streamline assessments, is widely perceived as arbitrary and inflationary, leading to disproportionately high duties, particularly for more affordable used EVs. Compounding these issues are the systemic inefficiencies and infrastructural deficits at Nigerian ports, which exacerbate delays and increase operational costs, despite ongoing modernization efforts.
These challenges collectively undermine the accessibility and affordability of EVs in Nigeria, hindering the nation’s progress toward its ambitious 2040 and 2060 ZEV targets. To unlock Nigeria’s potential as a leader in Africa’s EV revolution, this report concludes with actionable recommendations. These include the urgent need for comprehensive, gazetted guidelines for EV import procedures and incentives, a transparent and equitable VIN valuation system, targeted investments in port infrastructure and specialized EV handling capabilities, and enhanced inter-agency collaboration to ensure policy coherence and predictable trade facilitation.
Introduction: Nigeria’s Electric Mobility Vision and Import Landscape
The global automotive industry is undergoing a profound transformation, with electric vehicles rapidly gaining traction as a cornerstone of sustainable development efforts. This shift is not merely an environmental imperative but also a significant economic opportunity, particularly for emerging markets. Nigeria, as Africa’s most populous nation and largest economy, is increasingly positioning itself within this global transition, recognizing the multifaceted benefits of electric mobility. However, the path to widespread EV adoption is fraught with challenges, particularly concerning the critical role of imports and the intricate regulatory environment governed by the Nigeria Customs Service.
Global and Regional Context of EV Adoption
The global landscape of electric vehicle adoption demonstrates a clear upward trajectory. In 2024, worldwide electric car sales surpassed 17 million units, accounting for over 20% of all new cars sold. This remarkable growth is a testament to the increasing maturity of EV technology, expanding consumer awareness, and supportive policy frameworks in various regions.
Significantly, emerging and developing economies, including those across Asia, Latin America, and Africa, have experienced a robust surge in EV sales. In 2024, these markets collectively witnessed a year-on-year increase of over 60% in electric car sales, with their market share nearly doubling from 2.5% to 4%.
Within Africa, electric car sales more than doubled to approximately 11,000 units in 2024, signaling a nascent yet promising market.
This accelerating global and regional shift towards EVs signifies a substantial market opportunity for Nigeria. The rapid growth observed in other emerging markets, even from a relatively low base, indicates that well-structured policy and adequate infrastructure are pivotal enablers for EV expansion. Nigeria’s ability to streamline its EV import processes will directly influence its capacity to capitalize on this global trend and achieve its ambitious sustainability objectives. The challenges encountered by Nigerian stakeholders are not isolated but directly impact the nation’s participation in a broader, transformative global transition.
Nigeria’s Commitment to Zero-Emission Vehicles (ZEV Declaration 2024, 2050 Auto Policy Agenda, Energy Transition Plan)
Nigeria has articulated a strong commitment to embracing electric mobility, aligning its national development goals with global sustainability imperatives. The nation formally pledged to achieve 100% zero-emission sales for all new cars and vans by 2040, a commitment underscored by its participation in the Zero Emission Vehicles (ZEV) Declaration at the 2024 International Transport Forum.
This declaration highlights a determined push to transition towards a low-carbon transportation system.
The country’s strategic intent was further outlined in its initial 2050 Auto Policy Agenda, which set ambitious targets for EV penetration: 7.5% by 2025, progressively increasing to 40% by 2050. This policy aimed to position Nigeria as a regional leader in EV adoption.
Complementing this, the National Action Plan for the Development of Electric Vehicles (EVDP) emphasises local production, with a target of at least 30% domestically produced EVs by 2032. This initiative is designed to stimulate the economy, reduce reliance on imported vehicles, and attract investments through various financial incentives, including reduced import duties and tax breaks.
Furthermore, Nigeria’s broader Energy Transition Plan (ETP), launched in 2022, sets an overarching goal of achieving net-zero emissions by 2060. Within this plan, EVs are projected to constitute 60% of the total vehicle market (both new and used) by 2050, reaching 100% by 2060.
Despite these ambitious long-term commitments and declarations to promote EVs, a noticeable policy redirection under the current administration has prioritized Compressed Natural Gas (CNG)-powered vehicles. This shift has demonstrably slowed EV growth and hindered market development, creating a significant policy inconsistency that erodes investor confidence and complicates strategic planning for stakeholders.
The government’s stated goals for EV adoption appear to be undermined by a lack of consistent and singular focus in its energy transition strategy.
Current State of EV Adoption in Nigeria
As of early 2025, Nigeria’s electric vehicle fleet remains relatively modest, with approximately 15,000 to 20,000 EVs on its roads. This represents a mere 0.5% to 1% of the total vehicle population, despite being a marked increase from 5,000 EVs five years prior.
Between 2020 and 2022, EV sales accounted for a growing, albeit small, proportion of total car sales, rising from 4.22% to 7.11%.
Local manufacturers are actively contributing to the nascent EV ecosystem. Companies such as Electric Motor Vehicle Company (EMVC) have introduced electric cars and tricycles, while Innoson Vehicle Manufacturing Company launched its first electric car models in 2024. JET Motor Company has focused on producing electric buses, and Spiro is noted for manufacturing EV bikes.
The current low EV penetration, despite some growth and local manufacturing efforts, underscores a vast untapped market potential. The notable presence and growth of 2- and 3-wheelers (electric tricycles and bikes) suggest that these segments might offer a more accessible entry point for EV adoption in Nigeria, potentially facing different customs challenges or opportunities compared to 4-wheelers. This highlights the need for policies that differentiate between vehicle types and address their specific import needs.
The electric mobility landscape in Nigeria is undergoing a remarkable transformation, with undeniable momentum driven by both private and public sector initiatives in Q1 2025. SGX Mobility has deployed its electric vehicle fleet in partnership with Bolt, advancing clean urban transportation.
PHOENIX RENEWABLE GROUP is manufacturing hybrid tricycles powered by both CNG and electricity, offering tailored mobility solutions for Nigeria.
Revive Earth continues to train technicians in retrofitting used 2- and 3-wheelers, building critical skills for a sustainable transport future.
eDryv_ride, developed by Foltï Technologies Limited, has launched an innovative 4-wheeler ride-hailing service in Lagos, powered by smart mobility tech.
Qoray Mobility and SiltechWorld are scaling up DC fast charging station deployment, building out core EV infrastructure.
ConnectVolt is mapping out EV charging and battery swapping stations nationwide, enhancing accessibility and user experience.
The University of Lagos has rolled out electric shuttle buses on campus, offering eco-friendly transport to students and staff.
Covenant University is shaping the future workforce with its new diploma program in electric mobility.
EV World Africa is offering end-to-end EV consulting services, leveraging deep infrastructure expertise to help businesses plan, build, and scale electric fleets.
The Electric Mobility Promoters Association of Nigeria (EMPAN) is driving national adoption through advocacy, policy engagement, and multi-stakeholder collaboration.
The National Automotive Design and Development Council (NADDC) has launched a university-level R&D competition focused on electric mobility innovation.
The President of Nigeria has announced the Carbon Market Activation Policy, aimed at unlocking $2.5 billion in high-integrity carbon credits, sparking investor interest and climate ambition.
Benue State, through Benue Investment and Property Company (BIPC) in partnership with Esse Mobility, has introduced electric 3- and 4-wheelers—an excellent model for other states to follow. The North East Development Commission is rolling out mega EV charging stations across all northeastern states, ensuring regional equity in access.
This wave of progress is a clear signal: this is not the time for competition—it’s the time for collaboration. To grow a strong, inclusive, and future-ready e-mobility ecosystem in Nigeria, public institutions, private enterprises, development partners, and innovators must unite. In 2025, Max is scaling electric vehicle adoption by deploying smart EV infrastructure and fleet services across Nigerian cities, while Spiro is expanding its battery swapping network and e-bike solutions to accelerate clean, affordable urban mobility.
The Critical Role of Imports in Meeting Nigeria’s EV Demand
Nigeria faces a significant domestic vehicle production deficit, with an annual demand of 720,000 units far exceeding its local production capacity of only 14,000 units per year.
This substantial gap necessitates a heavy reliance on imports, primarily of used vehicles, to satisfy local transportation needs.
Consequently, electric vehicles currently in Nigeria are predominantly imported, a factor that contributes significantly to their high market prices.
Given Nigeria’s considerable vehicle demand-supply imbalance and the nascent state of its local EV manufacturing industry, imports are indispensable for advancing the nation’s electric mobility agenda. Any friction or inefficiency within the Nigeria Customs Service’s import processes directly impacts the accessibility and affordability of EVs, thereby hindering the achievement of national EV adoption targets. The effectiveness of customs procedures is thus a direct determinant of the pace and scale of Nigeria’s transition to a low-carbon transportation system.
Regulatory Framework for Electric Vehicle Importation in Nigeria
The importation of goods into Nigeria, including electric vehicles, is governed by a complex and evolving regulatory framework overseen primarily by the Nigeria Customs Service (NCS). Understanding this framework is crucial for any stakeholder navigating the import landscape.
Overview of Nigeria Customs Service (NCS) and General Import Procedures
The general import process in Nigeria is multi-layered, commencing with the fundamental requirement for importers to register with the Federal Inland Revenue Service (FIRS) to obtain a Tax Identification Number (TIN). This initial step is foundational for all subsequent import activities.
Key documentation required for customs clearance is extensive and includes a Bill of Lading (issued by the shipping company), a Commercial Invoice (detailing the vehicle’s price and specifications), a Customs Declaration Form (CDF), and an Import Permit, if the specific vehicle type necessitates it. Additionally, a duly completed Form ‘M’ entry declaration, a packing list, and a Single Goods Declaration are mandatory. Proof of payment for duties and taxes is also a critical requirement.
A significant component of the import process is the Pre-Arrival Assessment Report (PAAR), a mandatory electronic document that details the imported goods and their value prior to arrival, designed to expedite the clearance process at the port.
The e-Form “M” is another crucial document, only valid for importation after registration by the Nigeria Customs Service, a registration that Authorised Dealer Banks must confirm before proceeding with other import processes.
Customs duties in Nigeria are generally levied on the Cost, Insurance, and Freight (CIF) value of imported goods. This value is determined by the Customs Service based on a combination of factors, including the invoice price, insurance costs, and freight charges.
Given the inherent complexity and extensive documentation requirements of Nigeria’s general import procedures, engaging a licensed customs broker or agent is a common and often recommended practice to navigate the intricate clearance process and mitigate potential delays.
For a nascent market like EVs, where specific guidelines may be lacking or newly introduced, this foundational complexity can be exacerbated, leading to increased processing times, higher operational costs, and a greater propensity for errors or disputes, even before EV-specific challenges are considered. The general framework, while established, presents a baseline level of administrative burden that can be particularly acute for emerging product categories.
Fiscal Policies and Incentives for EVs
Nigeria has introduced several fiscal policies aimed at incentivising the adoption of electric vehicles, reflecting a strategic intent to promote cleaner energy and reduce greenhouse gas emissions.
Value Added Tax (VAT) Exemption: A significant incentive is the explicit exemption of Electric Vehicles and parts for their assembly from Value Added Tax (VAT). This policy, formalised under the VAT Modification Order 2024 and effective September 1, 2024, also extends to services related to the manufacturing, assembly, and sale of electric vehicles.
The primary objective of this exemption is to promote EV adoption and contribute to environmental sustainability.
Exclusion from Green Tax Surcharge: Further demonstrating a supportive fiscal stance, electric vehicles are specifically excluded from the Green Tax Surcharge. This additional Import Adjustment Tax (IAT), introduced in the Fiscal Policy Measures 2023, applies to certain internal combustion engine vehicles based on engine capacity.
This exclusion provides a comparative advantage for EVs over conventional vehicles in terms of import costs.
Import Duty Rates for EVs: While the National Action Plan for the Development of Electric Vehicles (EVDP) explicitly emphasises financial incentives such as “reduced import duties” for EVs to encourage investment and local production, a critical regulatory gap persists. The provided Nigeria Customs Tariff Book for Cars (2025) does not explicitly list specific import duties for electric vehicles under HS Code 8703.80 (which covers motor vehicles with only electric motors) or similar classifications.
Instead, the tariff book details duties for petrol and diesel vehicles, which typically include a 20% import duty and 15% levies for used and new cars, with some completely built-up (FBU) vehicles attracting a 35% duty.
This absence of a clearly defined, specific import duty rate for EVs within official tariff documents creates significant regulatory ambiguity. This lack of clarity can lead to arbitrary duty assessments, increased costs for importers, and ultimately undermine the government’s stated objective of offering “reduced import duties” for EVs.
Comprehensive Import Supervision Scheme (CISS) / FOB Levy: The Nigeria Customs Service Act (NCSA) 2023 introduced a 4% charge on the Free-on-Board (FOB) value of imports. This charge is intended to fund the Destination Inspection Scheme and customs modernisation initiatives.
While this levy was temporarily suspended for stakeholder consultations, its existence and potential re-implementation add to the overall cost burden and create uncertainty in financial planning for EV importers.
Other Applicable Taxes: In addition to import duty and levies, other taxes are typically applied to vehicle imports. These include a 0.5% ECOWAS Trade Liberalisation Scheme (ETLS) and a 7.0% Surcharge (SUR).
These additional charges contribute to the total customs duty payable by importers.
The combination of clear legislative intent to incentivise EVs (VAT exemption, Green Tax exclusion) with a critical lack of procedural clarity for claiming these benefits and the absence of specific import duty rates creates a deeply ambiguous and inconsistent regulatory environment. This systemic failure in policy implementation effectively negates the positive impact of intended fiscal incentives, leading to operational friction, increased costs, and a significant erosion of investor confidence in Nigeria’s commitment to electric mobility. The 4% FOB levy, even if suspended, further contributes to this uncertainty, impacting the predictability of import costs.
The following table summarises the key fiscal policies and their implications for EV imports:
Table 1: Key EV Import Duties and Taxes in Nigeria (2025)
Tax/Levy Type | Rate/Policy (2025) | Implications for EVs (2, 3, 4-wheelers) |
Value Added Tax (VAT) | 0% for EVs, parts, manufacturing, assembly, and sale (Standard rate is 7.5%) | Direct financial incentive reduces overall cost. However, procedural clarity for claiming an exemption is lacking. |
Import Duty (EV-specific) | No explicit official rate can be found in the provided tariff book. | Significant regulatory ambiguity; potential for arbitrary assessments and inflated costs. Undermines the “reduced import duties” incentive. |
Import Duty (General Cars) | 20% for used/new cars; some FBU vehicles 35% | EVs may be subjected to these general rates in the absence of a specific EV tariff, increasing the cost burden. |
Import Adjustment Tax (Green Tax Surcharge) | EVs excluded | Positive incentive: EVs are not subject to this additional tax levied on certain ICE vehicles. |
Comprehensive Import Supervision Scheme (CISS)/FOB Levy | 4% of FOB value (currently suspended for consultation) | Adds to overall import cost if implemented; creates financial uncertainty for importers. |
ECOWAS Trade Liberalisation Scheme (ETLS) | 0.5% | Standard levy applicable to imports. |
Surcharge (SUR) | 7.0% | Standard levy applicable to imports. |
Vehicle Age Limit | 10 years (2015 models or newer by May 2025) | Restricts the importation of older, potentially more affordable used EVs, increasing the entry cost barrier for consumers. |
Vehicle Age Limit Policy
As of May 2025, the Nigeria Customs Service (NCS) rigorously enforces a 10-year age limit on imported vehicles. This policy dictates that only vehicles manufactured in 2015 or newer may be imported without incurring punitive duties or being outright barred from entry.
This regulatory stance represents a progressive tightening of import regulations, evolving from a 15-year limit in May 2022, which was subsequently reduced to 12 years under the Vehicle Identification Number (VIN) Valuation Policy, then unofficially to 9 years by July 2022, before settling around 10 years by 2023.
The NCS justifies this policy by citing objectives such as modernising the national vehicle fleet, mitigating environmental concerns (e.g., air pollution from older vehicles), and enhancing road safety and fiscal efficiency.
While these motivations are laudable, the policy creates a significant economic barrier for the majority of Nigerian consumers. The Nigerian populace traditionally relies on more affordable foreign-used vehicles to meet their transportation needs, given the country’s substantial demand-supply gap in vehicle production.
Given the inherently higher upfront cost of electric vehicles compared to conventional internal combustion engine (ICE) vehicles, this age limit policy disproportionately impacts the availability of more affordable used EVs. By restricting the import of older models, the policy effectively limits access to a potentially more budget-friendly entry point for EV adoption, thereby impeding widespread transition to electric mobility. This situation can inadvertently push price-sensitive consumers towards older, more polluting ICE vehicles that, despite being within the “acceptable” age range, may be less expensive than even newer used EVs. Consequently, a policy designed to modernise the fleet may, in the context of EV adoption, inadvertently perpetuate reliance on fossil-fuel vehicles by making cleaner alternatives less accessible.
Harmonised System (HS) Codes for Electric Vehicles
The Harmonised System (HS) provides a globally standardised nomenclature for classifying traded products, including electric vehicles. Specific codes exist for electric vehicles, such as HS Code 8703.80, which broadly covers “Motor Vehicles With Only Electric Motor, others”.
Other subheadings under 8703 also exist for various vehicle types, ensuring a framework for international trade classification.
Despite the existence of these international classification standards, reports indicate that customs officials across the African continent, including Nigeria, encounter difficulties in accurately inventorying, classifying, and registering the growing number of imported electric motorcycles (2-wheelers) and tricycles (3-wheelers).
This challenge points to a critical gap not in the availability of HS codes themselves, but in the operational training and potentially the granular data infrastructure within the Nigerian Customs Service.
This operational inefficiency can lead to several adverse outcomes. Firstly, it may result in misclassification of electric 2- and 3-wheelers, leading to incorrect duty assessments that either overcharge importers or fail to capture appropriate revenue. Secondly, such ambiguities can cause significant delays in the clearance process, as disputes arise over classification or as customs officials struggle to correctly process these emerging vehicle types. Furthermore, the inability to accurately classify and register these vehicles hinders the collection of precise import data. This data is crucial for informed policy-making, as it provides insights into specific EV adoption trends within the 2- and 3-wheeler segments, which are particularly relevant for Nigeria’s urban mobility and economic landscape.
Without accurate data, the government’s ability to tailor incentives, plan infrastructure development, and assess the impact of its EV policies is compromised.
Core Challenges Faced by Stakeholders with the Nigeria Customs Service
Stakeholders involved in the importation of electric vehicles into Nigeria encounter a range of systemic challenges when interacting with the Nigerian Customs Service. These challenges extend beyond mere administrative hurdles, impacting cost, predictability, and ultimately, the pace of EV adoption in the country.
- Policy Ambiguity and Inconsistency
A primary challenge stems from the lack of clear and consistently applied policies, creating an unpredictable environment for EV importers. While the Value Added Tax (VAT) Modification Order 2024 unequivocally exempts electric vehicles and their parts from VAT and extends this exemption to manufacturing, assembly, and sale services, the practical procedure for claiming this exemption remains largely undefined. Neither the Order itself nor its accompanying commentaries provide specific forms or step-by-step guidelines for importers to follow.
General import guidelines from the NCS also do not detail EV-specific VAT exemption processes.
This procedural vacuum creates significant operational uncertainty for importers and customs agents, who may face arbitrary interpretations or delays in applying the exemption, effectively undermining the intended benefit.
Further compounding this issue is the broader policy redirection under the current administration. Despite Nigeria’s ambitious pledges for zero-emission vehicles by 2040 and 2060, there has been a noticeable pivot towards prioritising Compressed Natural Gas (CNG)-powered vehicles. This shift has demonstrably diluted the focus on EVs, leading to many EV-related projects becoming underfunded or stalled.
Such policy inconsistency signals an unstable regulatory environment, actively discouraging private-sector investment and hindering the overall development of the EV market. Beyond VAT, general “unclear customs waivers” for EVs have been identified as creating significant bottlenecks in the import process, contributing further to unpredictability and delays for stakeholders.
The combination of a clear legislative intent to incentivise EVs with a critical lack of procedural clarity for claiming these benefits, coupled with broader policy shifts towards competing technologies, creates a deeply ambiguous and inconsistent regulatory environment. This systemic failure in policy implementation effectively negates the positive impact of intended fiscal incentives, leading to operational friction, increased costs, and a significant erosion of investor confidence in Nigeria’s commitment to electric mobility. Importers are left navigating a landscape where stated policy and practical application often diverge, increasing business risk and discouraging investment.
2. Valuation System Challenges (VIN Valuation)
The Vehicle Identification Number (VIN) Valuation system, introduced by the NCS in February 2022, aimed to standardise import duties and eliminate undervaluation by automatically determining the value of import duty payable on a vehicle.
The system was designed to use artificial intelligence to allocate values, promoting self-declaration and reducing human contact to combat corruption.
However, this system has been met with fierce opposition from importers and clearing agents, who contend that it has arbitrarily inflated import duties by as much as 300%.
Stakeholders accuse Customs of utilising a “fraudulent database” and distorting values, potentially to meet revenue targets, arguing that these practices contravene international valuation principles based on transactional value, as outlined in WTO agreements on customs valuation.
A particularly problematic aspect of the VIN valuation system arises for older vehicles. If a vehicle is older than the enforced 10-year age limit (or 12 years at the time of VIN policy introduction) and is not captured in the system’s database, the VIN valuation system may arbitrarily assign it the value of a newer model (e.g., a 2014 model for cars manufactured between 2000 and 2013). This practice leads to significantly inflated duties, making older, more affordable vehicles (including potential used EVs) prohibitively expensive to import.
The VIN valuation system, despite its technological foundation, is perceived by stakeholders as a tool for arbitrary and inflated duty assessments, potentially driven by revenue targets rather than fair market value. This lack of transparency and alleged deviation from international valuation standards directly increases the cost of EV imports, particularly for more affordable used EVs, and fosters an environment of distrust between importers and the NCS. This acts as a significant economic disincentive, undermining the very goal of promoting EV adoption by making them prohibitively expensive for the average Nigerian consumer. The unpredictability of import costs due to this valuation method creates substantial financial risk for businesses operating in the EV import sector.
3. Operational Bottlenecks and Delays at Ports
Nigeria’s maritime sector, particularly its ports, is characterised by systemic inefficiencies that significantly impede trade facilitation. These challenges stem from ageing infrastructure, inadequate funding, and a resultant operating capacity below optimal levels.
Outdated facilities, obsolete technology, and a lack of cohesive logistics coordination contribute to chronic congestion, leading to substantial delays in cargo handling and clearance.
The problem is further exacerbated by the duplication of duties and overlapping responsibilities among various government agencies operating within the port environment, creating bureaucratic hurdles and increasing processing times.
For electric vehicles, these general port inefficiencies are compounded by specific handling requirements and safety considerations. EVs, particularly those equipped with lithium-ion batteries, demand specialised handling procedures due to the inherent risks associated with these power sources, including thermal runaway, toxic gas emissions, and challenges in fire extinguishing.
While international bodies like the International Maritime Organisation (IMO) are developing guidelines for the safe maritime transportation of EVs, Nigerian ports currently lack comprehensive, specific regulations or dedicated infrastructure for handling EVs safely and efficiently. This deficiency translates into potential delays as port staff, possibly lacking specialised training, navigate the complexities of EV handling, or as vehicles await appropriate storage and clearance facilities. The absence of clear safety protocols for lithium-ion batteries at ports could also lead to increased insurance costs or reluctance from shipping lines to transport EVs to Nigeria.
The Nigerian Ports Authority (NPA) has acknowledged the need for modernisation and efficiency, with plans to digitalise port operations by 2025 and upgrade infrastructure to enhance competitiveness.
However, the current state of port infrastructure and the lack of specific provisions for EV handling pose a significant barrier. Without dedicated facilities for charging, maintenance, and safe storage of EVs, and without adequate training for port personnel on EV-specific risks, the import process will remain protracted and costly. This operational friction at the ports directly translates into higher landing costs for EVs, making them less competitive and accessible in the Nigerian market.
Conclusions and Recommendations
Nigeria’s commitment to a zero-emission future, as articulated through its ZEV Declaration, 2050 Auto Policy Agenda, and Energy Transition Plan, sets an ambitious trajectory for electric vehicle adoption. However, the current landscape of EV importation reveals significant friction points with the Nigerian Customs Service that threaten to derail these national aspirations. The analysis presented in this report underscores a critical disjunction between policy intent and practical implementation, manifested in regulatory ambiguities, contentious valuation practices, and persistent operational bottlenecks at ports.
The explicit VAT exemption for EVs and their components is a positive fiscal step, yet its impact is diluted by the absence of clear, gazetted procedures for claiming this benefit. This procedural vacuum, coupled with a perceived policy shift towards CNG vehicles, creates an environment of uncertainty that deters private sector investment and complicates strategic planning for EV importers. Furthermore, the Vehicle Identification Number (VIN) valuation system, while intended to streamline assessments, is widely criticised for its arbitrary and inflationary outcomes, imposing disproportionately high duties that render EVs less affordable for the average Nigerian. The ongoing challenges in accurately classifying 2- and 3-wheel electric vehicles further highlight systemic data and training deficiencies within the customs framework. Finally, the ageing and inefficient port infrastructure, compounded by a lack of specialised handling facilities and safety protocols for lithium-ion batteries, contributes significantly to delays and increased import costs.
To align the practical realities of EV importation with Nigeria’s ambitious electric mobility goals, the following recommendations are crucial:
- Enhance Policy Clarity and Accessibility:
- Develop and Publish Detailed Guidelines: The Federal Ministry of Finance and the Nigeria Customs Service must urgently collaborate to issue comprehensive, gazetted guidelines outlining the precise procedures and documentation required for claiming VAT exemptions and any other fiscal incentives for all categories of imported EVs (2, 3, and 4-wheelers). This will provide much-needed clarity and predictability for importers and customs agents.
- Harmonise EV-Specific Import Duties: The NCS should publish clear, favourable, and consistent import duty rates for electric vehicles within its official tariff book (e.g., under HS Code 8703.80). This will eliminate ambiguity, ensure fair assessments, and genuinely reduce the cost burden, fulfilling the stated objective of “reduced import duties” for EVs.
- Reform the Vehicle Valuation System:
- Ensure Transparency and Fairness: The VIN valuation system must be reviewed and reformed to ensure its transparency, fairness, and alignment with international best practices (e.g., WTO Customs Valuation Agreement, which prioritises transactional value). This should involve open consultation with stakeholders to address concerns about arbitrary value assignments and inflated duties.
- Account for Depreciation of Used EVs: The valuation system should accurately reflect the depreciation of used electric vehicles, rather than assigning them values of newer models, to make second-hand EVs a more viable and affordable option for Nigerian consumers.
- Upgrade Port Infrastructure and Enhance Safety Protocols:
- Invest in Specialised EV Handling Facilities: The Nigerian Ports Authority (NPA) and port concessionaires should prioritise investment in dedicated infrastructure for handling electric vehicles, including specialised charging points, secure storage areas, and appropriate fire suppression systems for lithium-ion batteries.
- Implement Comprehensive Safety Regulations: Develop and enforce clear safety regulations for the handling, storage, and transport of EVs and their batteries within Nigerian ports, potentially drawing from international guidelines (e.g., IMO recommendations).
- Provide Specialised Training: Conduct mandatory training programs for customs officials, port operators, and emergency services personnel on the safe handling, inspection, and emergency response procedures specific to electric vehicles and lithium-ion batteries.
- Foster Inter-agency Coordination and Stakeholder Engagement:
- Establish a Cross-Sectoral Working Group: Create a dedicated inter-agency committee comprising representatives from the NCS, Federal Ministry of Finance, National Automotive Design and Development Council (NADDC), Nigerian Ports Authority (NPA), Federal Inland Revenue Service (FIRS), and relevant private sector associations (e.g., ANLCA, EMPAN). This group should be tasked with ensuring policy coherence, streamlining processes, and promptly addressing emerging challenges.
- Promote Continuous Dialogue: Maintain open and regular dialogue with importers, customs agents, local manufacturers, and other industry stakeholders to gather feedback, address practical issues, and ensure that policies are responsive to market realities.
By proactively addressing these challenges through comprehensive policy adjustments, infrastructural investments, and enhanced collaboration, Nigeria can significantly de-risk EV importation, reduce costs, and accelerate the adoption of electric 2, 3, and 4-wheelers. This strategic approach is essential not only for achieving the nation’s environmental goals but also for leveraging the economic opportunities presented by the global shift towards sustainable transportation.