The Federal Government has introduced 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 took effect on July 1 as part of the 2026 fiscal policy measures aimed at reducing vehicle importation costs, easing the burden on importers and making vehicles more affordable 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 dropped from 15 per cent to five per cent.
The Nigerian Customs Service announced that alongside the levy reductions, it has also begun implementing a new Green Tax Surcharge to promote environmental sustainability under the 2026 fiscal policy framework.
The policy has generated mixed reactions from stakeholders, with industry operators describing the reduction in import levies as a positive development that could stimulate trade and lower vehicle costs.
President of the National Association of Motor Dealers, Prince Ajibola, welcomed the decision but said it was too early to determine its full impact because the details of the Green Tax Surcharge had not yet been disclosed.
Ajibola noted that the benefits of the lower import levies could be eroded if the Green Tax Surcharge equals or exceeds the reductions, stressing that the final impact on vehicle prices will depend on the size of the new environmental charge.
