The Federal Government has significantly reduced Customs import levies on new and used vehicles, cutting charges by as much as 67 per cent as part of its 2026 fiscal policy aimed at making vehicle imports more affordable and stimulating trade.
The revised tariff regime, which took effect on July 1, forms part of a broader overhaul of Nigeria’s import duty framework designed to boost economic activity while introducing environmental sustainability measures.
Under the new policy, the import levy on brand-new vehicles has been reduced from 20 per cent to 10 per cent, representing a 50 per cent cut. For used vehicles, the levy has dropped from 15 per cent to five per cent, amounting to a 67 per cent reduction.
Announcing the implementation, the Nigeria Customs Service (NCS) said the new tariff adjustments would be introduced alongside a Green Tax Surcharge.
“Beginning 1st July, 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 Fiscal Policy Measures to support environmental sustainability, while also reducing the import levy on new vehicles from 20% to 10% and that of used vehicles from 15% to 5% to ease the cost of vehicle importation,” the service said.
Reacting to the development, President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, Prince Ajibola, described the reduction in import levies as a positive step but cautioned that its impact on vehicle prices would depend on the size of the proposed Green Tax Surcharge.
“If the levy on used vehicles has been reduced from 15 per cent to five per cent, that is a 10 per cent reduction, which is a good development. However, we need to know what the green tax surcharge will be before we can assess its overall impact,” he said.
Ajibola noted that motorists and dealers could only expect cheaper vehicle prices if the new surcharge remained lower than the amount removed through the levy reductions.
“If the surcharge is less than the reduction, then it is a plus and we can expect some improvement in vehicle prices.
“But if it is the same as or more than what has been removed, then there will be little or no difference,” he added.
The latest policy is expected to provide relief for vehicle importers and prospective buyers, although stakeholders say its full impact will depend on the implementation of the accompanying environmental tax.
