The Federal Government has commenced the implementation of a new tariff policy that significantly reduces Customs charges on imported new and used vehicles as part of its 2026 fiscal policy measures.
The new policy, which took effect on July 1, is aimed at lowering the cost of vehicle importation, making automobiles more affordable for Nigerians and boosting trade activities.
Under the revised tariff structure, 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.
The Nigeria Customs Service (NCS) announced the implementation in a statement published on its official website.
According to the agency, the new measures form part of the 2026 Fiscal Policy and include the introduction of a Green Tax Surcharge to support environmental sustainability.
“Beginning July 1, 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 per cent to 10 per cent and that of used vehicles from 15 per cent to five per cent to ease the cost of vehicle importation,” the statement read.
Reacting to the development, the 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 step but said it was too early to determine whether it would translate into lower vehicle prices.
He noted that the impact of the policy would largely depend on the details of the newly introduced Green Tax Surcharge, which have yet to be disclosed.
“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,” he said.
Ajibola explained that if the surcharge is lower than the reduction in import levies, Nigerians could expect a decrease 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,” he added.
