The Federal Government has reduced import levies on vehicles as part of the 2026 Fiscal Policy Measures, with new rates taking effect immediately. Auto dealers are awaiting details on the accompanying Green Tax Surcharge before determining the full impact on prices.
The changes lower the import levy on new vehicles from 20 per cent to 10 per cent and on used vehicles from 15 per cent to five per cent. Officials said the reductions aim to ease import costs, stimulate economic activity and provide relief to businesses and consumers.
Prince Ajibola, President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, welcomed the move but stressed the need for clarity on the Green Tax. "We don’t know what the surcharge is going to be," he said in an interview.
Ajibola noted that import duties remain a major factor in high vehicle prices in Nigeria. He added that the policy could lower costs, especially for commercial vehicles, if the Green Tax is kept minimal. The Nigeria Customs Service is implementing the revised tariff structure.
