By Oluyinka Onigbinde
The Federal Government’s much-publicised zero-import-duty policy on electric vehicles (EVs) and other clean-energy vehicles is facing criticism from freight forwarders and industry stakeholders, who have warned that the cumbersome process of obtaining Import Duty Exemption Certificates (IDEC) is undermining the Ease of Doing Business initiative and could frustrate Nigeria’s green transportation ambitions.
The stakeholders’ concern is centred on the requirement that importers seeking to benefit from the government’s zero-duty concession must first obtain an IDEC from the Federal Ministry of Finance before the Nigeria Customs Service can grant the exemption.
Former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, described the requirement as a major bureaucratic obstacle, arguing that the government cannot simultaneously announce incentives to encourage clean-energy transportation and subject investors to a process capable of keeping their consignments at the port for months.
Farinto, who spoke with our correspondent, said the zero-duty policy covering electric vehicles, compressed natural gas (CNG) vehicles, liquefied petroleum gas (LPG) vehicles and other clean-energy vehicles was commendable, but warned that the implementation mechanism could defeat the purpose of the policy.
According to him, the Federal Ministry of Finance should remove the requirement for a separate IDEC for the affected category of vehicles and instead direct the Nigeria Customs Service to incorporate the zero-duty concession directly into its clearance platform.
Farinto said his criticism was based on practical experience, revealing that he personally handles IDEC applications for importers.
“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.”
He warned that the time required to process the certificate could wipe out the financial benefit of the government’s duty waiver, as consignments would continue to accumulate demurrage, storage and other port-related charges while importers wait for approval.
“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 said.
Farinto argued that the requirement was unnecessary because Customs already has the capacity to determine whether a vehicle qualifies for the concession through the import documentation and physical examination of the cargo.
He specifically mentioned the Bill of Lading, packing list and other shipping documents as sufficient tools for Customs to establish the nature of the imported vehicle.
“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 said eliminating the additional approval would reduce clearance time, lower port costs and make the government’s clean-energy policy more attractive to importers.
He maintained that the policy itself was sound, but warned that its implementation could determine whether the initiative succeeds or fails.
“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.”
Also reacting, freight forwarding stakeholder, Mr. Stanley Ezenga, lamented that the IDEC regime had become a barrier to trade facilitation, arguing that the additional administrative requirement makes it more difficult for legitimate importers to take advantage of government incentives.
Ezenga raised concern among operators that the country’s trade policies are often weakened at the implementation stage, with multiple approvals and administrative procedures adding cost and uncertainty to cargo clearance.
He stated that for the freight forwarding community, the central concern is not the principle of government verification but the time and cost associated with obtaining the certificate.
He argue that where government has already announced a zero-duty regime for a clearly identified category of imports, the process for accessing the incentive should be seamless and preferably automated.
He said making importers pass through another approval process before Customs can recognise the concession runs contrary to the Federal Government’s Ease of Doing Business policy, particularly at a time when the government is seeking to reduce cargo clearance time and improve the competitiveness of Nigerian ports.
Meanwhile, the General Secretary of the Car Dealers Association, Mr. Theo Olaniran, adopted a more cautious position, saying the association had yet to see the implementation of the electric vehicle zero-duty policy in practical terms.
Olaniran, who spoke with Shipping Position Daily, said the association was not in a position to make a definitive assessment of the IDEC regime or its effect on EV imports.
“We have not heard of that. We cannot comment yet, because if I am telling you something that we have not even seen, even if he says it is zero duty, we have not heard of that,” he said.
Olaniran questioned the readiness of the country’s supporting infrastructure, particularly electricity and charging facilities, to support widespread adoption of electric vehicles.
According to him, beyond announcing zero import duty, government must also address the infrastructure required to make electric vehicles commercially viable and useful to Nigerians.
He questioned whether sufficient charging infrastructure and alternative energy sources such as solar power were available across the country to support EV users.
“If it is zero duty, is there any electricity that we are going to charge it? How many mileages? Are they going to build electricity in different places, or solar in a way that we will be able to charge?” he asked.
Olaniran said the government’s policy would require corresponding infrastructure and practical measures before the industry could properly assess its impact.
“When government makes a policy and they put anything in place, they have not put anything in place yet. So, we cannot comment.”
