Nigeria cuts vehicle import tariffs adds green tax

The Federal Government has implemented a revised vehicle import policy, reducing tariffs on imported vehicles while introducing a new environmental surcharge. The measures, which took effect on July 1, 2026, are part of the 2026 Fiscal Policy Measures designed to lower import costs and promote environmental sustainability.

Under the new structure, the import levy on brand-new vehicles has been reduced from 20 percent to 10 percent. The levy on used vehicles has been cut from 15 percent to 5 percent. Officials stated the policy aims to ease import costs, stimulate economic activity, and provide relief for businesses and consumers in the automotive sector.

Alongside the levy reductions, the government introduced a Green Tax Surcharge on selected imported vehicles. According to the Nigeria Customs Service, which is implementing the policy, vehicles with engine capacities between 2,000cc and 3,999cc will attract a two percent surcharge. Vehicles with engines of 4,000cc and above will face a four percent surcharge. Electric vehicles, mass transit buses, locally manufactured vehicles, and vehicles below 2,000cc are exempt from the Green Tax.

Industry stakeholders, however, are adopting...