By Oluyinka Onigbinde
The former Acting National President of the Association of Nigerian Licensed Customs Agents, Dr. Kayode Farinto, has faulted the Federal Ministry of Finance’s implementation of the Federal Government’s zero-duty policy on electric vehicles (EVs), warning that the requirement for importers to obtain an Import Duty Exemption Certificate (IDEC) could undermine the country’s green transport agenda and frustrate efforts to accelerate the adoption of cleaner energy vehicles.
Farinto, who addressed journalists on Wednesday, said while the Federal Government’s decision to grant zero import duty on electric vehicles, compressed natural gas (CNG) vehicles, liquefied petroleum gas (LPG) vehicles and other clean-energy vehicles is commendable, the implementation mechanism introduced by the Nigeria Customs Service could discourage importers and ultimately deny Nigerians the benefits of the initiative.
He specifically called on the Minister of Finance, under whose supervision the Nigeria Customs Service operates, to direct that the zero-duty incentive be embedded directly on the Customs clearance portal, eliminating the need for importers to obtain an Import Duty Exemption Certificate from the ministry before enjoying the concession.
According to him, requiring importers to secure an IDEC before accessing the duty waiver creates an unnecessary bureaucratic process that runs contrary to the principles of trade facilitation.
“I am one of those processing IDECs for importers and I know what the process entails. Subjecting importers to obtaining an Import Duty Exemption Certificate before enjoying zero duty is rigorous and time-consuming. It takes a minimum of 60 days before approval is granted,” Farinto said.
He explained that during the waiting period, consignments continue to accumulate demurrage, storage charges and other port costs, thereby eroding the financial advantage the government intended to provide through the zero-duty policy.
“The government’s intention is to encourage Nigerians to import electric vehicles and other clean-energy vehicles. But if importers must wait for about 60 days to obtain an IDEC, the cargo would have attracted huge demurrage and terminal charges. The good intention of the government will simply be defeated,” he stated.
Farinto recalled that similar implementation challenges had undermined previous government interventions, citing the rice import policy as an example of how sound policies can fail because of cumbersome administrative procedures.
He argued that Customs officers already possess the capacity to verify whether an imported vehicle qualifies for the incentive through the Bill of Lading, packing list and other shipping documents presented during cargo clearance.
“There is no need for another approval process. Once the Bill of Lading identifies the cargo as an electric vehicle, Customs can physically verify it before release. The Ministry of Finance should simply direct that zero duty applies automatically on the Customs portal,” he said.
The former ANLCA acting president maintained that removing the IDEC requirement would accelerate cargo clearance, reduce port costs and enable the Federal Government to achieve its objective of promoting cleaner transportation.
He noted that the zero-duty policy aligns with Nigeria’s environmental commitments by encouraging the adoption of electric, CNG and LPG-powered vehicles, which produce significantly lower emissions than conventional fuel-powered automobiles.
“The government wants Nigeria to embrace green transportation in line with global environmental standards. Electric vehicles do not emit carbon monoxide, while CNG and LPG vehicles are cleaner alternatives. Government has even exempted them from VAT because it wants Nigerians to embrace them,” he said.
Farinto stressed that stakeholders have a responsibility to point out implementation flaws before they undermine government policies.
“The policy itself is good. The challenge is the implementation. If Customs insists that importers must first obtain an Import Duty Exemption Certificate from the Ministry of Finance, the policy will not achieve its desired objective.
“It is not in line with trade facilitation. The Ministry of Finance should remove the IDEC requirement for this category of imports so Nigerians can genuinely benefit from the zero-duty policy,” he added.
