For millions of Nigerians saving to own their first vehicle, and for dealers striving to keep their businesses afloat despite rising costs, fresh import duty reductions by the Federal Government could mark a turning point. By cutting vehicle import levies and lowering customs duties on passenger vehicles, the government is seeking to make cars more affordable, stimulate business activity and ease inflationary pressure across the economy.
The Nigeria Customs Service (NCS) announced on Wednesday that implementation of the 2026 Fiscal Policy Measures has commenced, introducing significant reductions in vehicle import charges while also launching the country’s new Green Tax Surcharge.
Under the new measures, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has fallen from 15 per cent to five per cent. In addition, customs duties for fully built passenger vehicles have been reduced from 70 per cent to 40 per cent, a move expected to lower the landing cost of imported vehicles and ultimately reduce prices for consumers.
The reforms are expected to benefit intending vehicle owners by making cars more accessible, while vehicle importers and dealers stand to gain from lower operating costs, improved sales volumes and increased market activity.
