Nigeria Customs Gets Approval to Spend N20 Billion on CNG Vehicles, Remote Facilitie# **Nigeria Customs Gets Approval to
The Nigeria Customs Service (NCS) has received approval to spend N20 billion on the procurement of Compressed Natural Gas (CNG) vehicles and the construction of facilities in remote areas. This follows the Federal Executive Council’s (FEC) recent directive that all government vehicle purchases must be CNG, solar, or electric-powered as part of Nigeria’s transition to cleaner energy.
Speaking at Monday’s FEC meeting, Coordinating Minister of the Economy, Mr. Wale Edun, confirmed that the Customs Service’s budget includes a N1 billion allocation for financing life insurance policies to be handled by brokers and underwriters.
The directive to purchase only CNG, solar, or electric-powered vehicles affects all government agencies, including the Shippers Council, Nigeria Customs Service, and marine and blue economy agencies. While these agencies initially sought approval for fossil fuel-powered vehicles, they were given conditional approvals that align with the government’s clean energy policy.
In a related development, the Nigeria Customs Service has introduced a 30-day free clearance window for goods at ports following the Central Bank of Nigeria’s (CBN) adjusted exchange rate policy. Under this initiative, goods will be held at ports free of charge for 30 days, after which clearance fees will apply. This policy is expected to ease port congestion and facilitate smoother business operations for importers.
The Federal Government continues to push for widespread CNG adoption through various initiatives, including:
– The launch of CNG retail outlets in Lagos and the Federal Capital Territory (FCT) by the Nigerian National Petroleum Corporation (NNPC).
– Establishment of free conversion centers to encourage vehicle owners to switch to CNG.
– A scheme for Nigerians to acquire affordable CNG-powered tricycles, with applications processed under the Presidential CNG Initiative (Pi-CNG).
As part of its broader energy transition plan, the Federal Government has announced that 150 new CNG retail outlets will be operational across Nigeria by the end of 2025. This aligns with the government’s target to convert one million vehicles from petrol to CNG by 2027.
Additionally, the government has begun constructing mini Liquefied Natural Gas (LNG) plants in Kogi State, which will further enhance the availability of cleaner energy sources.
These efforts highlight Nigeria’s commitment to reducing dependence on fossil fuels, cutting carbon emissions, and ensuring a sustainable energy future for the country.
