The federal government has reduced the import levy on both new and used vehicles as part of the 2026 Fiscal Policy Measures, a decision expected to lower the cost of importing automobiles and improve access to vehicles across the country.
The revised fiscal measures took effect on July 1, 2026, and form part of a broader overhaul of Nigeria’s import tariff structure and customs framework aimed at promoting trade, stimulating economic activity and reducing the financial burden on importers.
Under the new policy, the import levy on new vehicles has been cut from 20 per cent to 10 per cent, while the levy on used vehicles has been reduced from 15 per cent to five per cent.
The federal government said the reductions are intended to make vehicle importation more affordable, a move expected to benefit importers and consumers through lower landing costs.
The government also announced that the Nigeria Customs Service will begin implementing the Green Tax Surcharge from July 1 as part of the 2026 Fiscal Policy Measures.
The surcharge is designed to support environmental sustainability, while the lower import levies are expected to encourage trade and ease the cost of bringing vehicles into the country.
According to the government, the implementation of the Green Tax Surcharge will coincide with the reduction in vehicle import levies, describing the measures as part of efforts to balance environmental objectives with economic growth.
The latest adjustments are among several fiscal reforms introduced by the federal government to review Nigeria’s customs and tariff regime, to create a more business-friendly trade environment and support economic development.
