Import Policy
Nigeria treats natural gas as a transition fuel. In 2025 the Nigeria Customs Service (NCS) granted zero import duty plus zero VAT on complete CNG, LNG, and battery-electric equipment and their components. The waiver covers CNG- and LPG-fuel vehicles, CNG/LPG conversion kits, and semi-trailers fitted with skid-mounted CNG/LPG/LNG tanks, which directly brings down the landed cost of core refueling-station hardware. An earlier gas-utilization exemption had already removed import duty on machinery, equipment, and spares used for domestic gas processing, and the Presidential CNG Initiative (PCNGI) now mandates that ministries buy only CNG vehicles and has set up a fast-track licensing window at NMDPRA.
Local Content & Investment Incentives
The duty waiver itself is a strong stimulus; officials cite nearly USD 700 million drawn into the CNG chain. PCNGI's lever is on the demand side: mandating that ministries buy CNG vehicles lays the base for a refueling network. The government is also negotiating local assembly and technology transfer, aiming to build local capacity for high-value parts like compressor skids and cylinder banks. For suppliers willing to transfer technology, this is the entry point to meet local-content scoring.
Market Access Requirements
Duty-free does not mean easy clearance; the real bottleneck is SONCAP mandatory conformity assessment. Pressure vessels and critical dispenser parts must be sampled and tested in the country of origin before shipment, first obtaining a Certificate of Conformity (CoC) and then exchanging it for a SONCAP certificate from the Standards Organisation of Nigeria before release, often adding three to six weeks for pressure equipment. Compressor skids are almost entirely imported, as no local plant can build a complete skid to NMDPRA and SON safety codes; lead times run 16 to 24 weeks. With forex shortages and port dwell time on top, the landed cost of a mother-station compressor package rose nearly 30% in a year.
What Endurance Energy Can Provide
What Nigeria's duty-free list lacks most is exactly the core hardware, and Endurance Energy can deliver it end to end: complete CNG mother- and daughter-station packages, compressor units, cryogenic tanks, and dispensers. We build compressor skids, cylinder banks, and dispensers as standardized skid blocks, going straight at the biggest pain point: lead time. For SONCAP pressure-equipment certification, we coordinate pre-shipment inspection with TÜV, BV, or SGS in the country of origin to avoid port detention. When forex is tight, our modular supply lets the client pay and receive in batches, easing the letter-of-credit burden. For mother stations in priority cities like Abuja and Lagos and daughter stations along highways, we deliver a turnkey package from process design to training. In line with the government's local-assembly direction, we can also evaluate CKD kit supply and technology-transfer interfaces.
FAQ
Does Nigeria still charge import duty on CNG refueling-station equipment now?
Complete units and key components are exempt from import duty and VAT under the 2025 policy, but only for CNG/LNG equipment and conversion kits on the exemption list. Pressure vessels and dispensers still must clear SONCAP conformity assessment. The certification itself carries no duty, yet it extends clearance time, so third-party inspection and port-demurrage costs must be budgeted.
How do we obtain a SONCAP certificate, and how long does it take?
First, a qualified laboratory in the country of origin issues a test report against standards recognized by the Standards Organisation of Nigeria to apply for a product certificate; then, before each shipment, an authorized body samples and issues a CoC, which the importer exchanges for a SONCAP certificate. For pressure equipment, an extra three to six weeks is common from first application to release, so Endurance Energy advises starting certification in parallel with production schedulin
With no local compressor-skid manufacturer, how does Endurance Energy address lead time and local service?
Endurance Energy uses standardized skid blocks to reduce on-site work and shorten pre-delivery commissioning; critical wear parts ship with the skid as spares, and Endurance Energy provides remote diagnostics plus training for local service partners. Local assembly is the government's clear direction, so Endurance Energy can evaluate CKD kit supply and technology-transfer interfaces.
