A new import policy which will ease tariff on imported vehicle by 67% has taken effect, July 1.
The new policy aimed at lowering the cost of importing vehicles for affordability, formed part of federal government 2026 fiscal policy.
Under the new arrangement, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles dropped from 15 per cent to five per cent.
Announcing the commencement of the policy in a statement posted on its website, the Nigeria Customs Service (NCS), 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?”
Meanwhile, 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 welcome development.
However, he said it was still too early to know if the policy would actually lead to lower vehicle prices.
According to him, the details of the new green tax surcharge have not yet been made public.
Ajibola said the cut in import levies is a good step, but warned that the benefits could disappear if the green tax surcharge is too high.
He said: “If the levy on used vehicles has been reduced from 15 per cent to five per cent, that is a 10 per cent reduction, which is a good development. However, we need to know what the green tax surcharge will be before we can assess its overall impact.
“If the surcharge is less than the reduction, then it is a plus and we can expect some improvement in vehicle prices.
“But if it is the same as or more than what has been removed, then there will be little or no difference.”
