Nigeria cuts vehicle import duties, adds Green Tax surcharge

The Federal Government of Nigeria reduced import levies on automobiles as part of its 2026 Fiscal Policy Measures, effective 1 July 2026. The duty on brand‑new vehicles fell from 20 % to 10 % and the levy on used vehicles dropped from 15 % to 5 %. At the same time, the government introduced a Green Tax surcharge on selected categories of imported vehicles to support environmental goals.

Industry representatives said the impact on retail prices will depend on the size of the new Green Tax. Prince Ajibola, president of the National Association of Motor Dealers, warned, “If they reduce the levy on vehicles and then introduce another surcharge, we need to know how much it is before we can say there will be any considerable change.” He added that the reduction could still benefit buyers, especially for commercial vehicles, provided the Green Tax remains modest. The reforms aim to lower vehicle costs, stimulate trade and modernise Nigeria’s automotive sector.