FG slashes Customs duty on imported vehicles, reduces levies by 67%
The Federal Government has implemented a new tariff regime that significantly reduces Customs levies on imported vehicles, cutting import charges on new vehicles by 50 per cent and on used vehicles by about 67 per cent.
The revised tariff structure, which took effect on July 1, forms part of the Federal Government’s 2026 fiscal policy measures aimed at lowering the cost of vehicle importation, easing the burden on importers and improving access to vehicles for consumers.
Under the new 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 five per cent.
Announcing the implementation, the Nigeria Customs Service (NCS) said the new regime also introduces a Green Tax Surcharge to promote environmental sustainability alongside the reduction in import levies.
“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 NCS stated.
The policy has drawn mixed reactions from stakeholders in the maritime and automobile sectors.
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 development but cautioned that its overall impact would depend on the details of the Green Tax Surcharge.
According to him, the benefits of the lower levies could be eroded if the new environmental surcharge is set at a level that offsets the reductions. He noted that if the surcharge remains lower than the amount removed from the import levy, consumers could eventually see lower vehicle prices.
