The Federal Government has reduced the import levy on new and used vehicles as part of its 2026 Fiscal Policy Measures, in a move aimed at lowering the cost of vehicle importation and easing the burden on importers and consumers.
The new measures, which took effect on July 1, 2026, form part of a broader review of Nigeria’s import tariff structure and customs regime designed to stimulate economic activity, support trade and improve access to vehicles.
Under the revised policy, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been cut from 15 per cent to 5 per cent.
According to the Federal Government, the Nigeria Customs Service will implement the new fiscal measures alongside the Green Tax Surcharge, which is aimed at promoting environmental sustainability.
The government said, “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 policy is expected to reduce the overall cost of bringing vehicles into the country, particularly at a time when high import charges, exchange-rate pressure and rising clearing costs have pushed vehicle prices beyond the reach of many Nigerians.
The reduction also affects importers of used vehicles, popularly known as tokunbo cars, who have repeatedly complained that high duties and levies increase the cost of clearing vehicles at the ports.
The government said the fiscal adjustment is part of efforts to balance revenue generation with trade facilitation and consumer relief.
The measure is also expected to support businesses in the automobile value chain, including dealers, logistics operators, clearing agents, transport companies and consumers who depend on imported vehicles.
However, the new Green Tax Surcharge introduces an environmental component to the 2026 fiscal framework.
The surcharge is targeted at vehicles and products considered to have higher environmental impact, especially high-engine-capacity vehicles.
Under the broader 2026 fiscal framework, vehicles below 2,000cc, mass-transit buses, electric vehicles and locally manufactured vehicles are listed among categories exempted from the Green Tax Surcharge.
The government said the surcharge is intended to encourage cleaner mobility, support environmental sustainability and align Nigeria’s fiscal policy with global trends on climate responsibility.
The revised fiscal measures also follow earlier tariff adjustments covering several items, including vehicles, agricultural products, industrial inputs and other goods considered important to economic growth.
Reports on the 2026 Fiscal Policy Measures indicated that fully built passenger vehicles, four-wheel-drive vehicles and station wagons now attract a lower total effective tariff than under previous fiscal policy regimes.
The Federal Government said the adjustments are intended to promote growth in critical sectors of the economy and reduce pressure on importers and consumers.
While the reduction in vehicle import levies is expected to provide some relief, stakeholders say the final impact on market prices will also depend on exchange rates, shipping costs, port charges, customs valuation, clearing procedures and dealer margins.
The Nigeria Customs Service is expected to implement the new rates and related fiscal measures from July 1, 2026.
Importers, clearing agents and vehicle dealers are therefore expected to adjust their documentation, declarations and cost projections in line with the revised policy.
The development marks a significant shift in Nigeria’s vehicle import policy, combining lower import levies with environmental taxation under the 2026 Fiscal Policy Measures.
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