The Federal Government has slashed the import levy on new and used vehicles as part of its 2026 Fiscal Policy Measures, a move aimed at reducing the cost of vehicle importation, easing pressure on importers and improving access to vehicles for Nigerians.
The revised fiscal measures, which took effect on Wednesday, July 1, 2026, form part of a broader review of the country’s import tariff structure and customs regime designed to stimulate economic activities, promote trade and improve the ease of doing business.
Under the new policy, 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 government said the new rates would be implemented by the Nigeria Customs Service alongside the introduction of a Green Tax Surcharge, a policy intended to support environmental sustainability while reducing the financial burden associated with vehicle importation.
In a statement announcing the implementation of the measures, the government said, “Beginning July 1, 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 Fiscal Policy Measures. The government is 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 reduction is expected to provide relief for vehicle importers and dealers, who have repeatedly expressed concerns over high import charges and their impact on vehicle prices. Analysts also say the policy could improve access to automobiles for individuals and businesses by lowering import costs, although the full effect will depend on exchange rates and other associated port charges.
The latest adjustment is one of several fiscal reforms introduced by the Federal Government to encourage trade, support economic growth and enhance revenue administration while balancing environmental and industrial policy objectives.
