Vehicle Import Relief Opens New Road to Affordable Car Ownership for Nigerians
The Federal Government’s recent reduction in vehicle import levies is expected to provide relief for millions of Nigerians seeking to own vehicles, while offering fresh opportunities for automobile dealers and importers across the country.The Nigeria Customs Service (NCS) has commenced the implementation of the 2026 Fiscal Policy Measures, introducing significant reductions in vehicle import charges alongside the newly introduced Green Tax Surcharge aimed at promoting environmental sustainability.Under the new policy, the import levy on brand-new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent. In addition, customs duties on fully built passenger vehicles have been reduced from 70 per cent to 40 per cent.The reduction is expected to lower the landing cost of imported vehicles, making them more affordable for consumers while boosting activities in Nigeria’s automotive market.
Alongside the tariff reductions, the Federal Government has introduced the Green Tax Surcharge, which took effect on July 1, 2026. The surcharge, ranging from two to four per cent, applies only to petrol-powered vehicles with engine capacities above 2,000cc.
However, electric vehicles, mass transit buses and smaller-engine vehicles below 2,000cc are exempt from the surcharge as part of the government’s efforts to encourage cleaner transportation and reduce carbon emissions.The reforms are part of a broader fiscal policy package introduced to ease inflationary pressures and reduce the cost of doing business. Beyond the automobile sector, import duties on rice have been reduced from 70 per cent to 47.5 per cent, while duties on crude palm oil have also been lowered. Import duties on agricultural and manufacturing machinery have been removed entirely to support local production and industrial growth.Government officials say the measures are designed to improve affordability for consumers, stimulate business activity and strengthen economic growth. The policy also includes a transition period to allow importers and businesses to adjust to the new tariff regime.Industry stakeholders believe that if the reduced import costs are reflected in showroom prices, more Nigerians could gain access to vehicle ownership, while dealers may benefit from increased demand and improved market confidence.
Nevertheless, experts note that exchange rates, port charges and other import-related costs will continue to influence the final retail prices of vehicles.
