Politics
Vehicle Import Relief Opens New Road To Affordable Car Ownership For Nigerians • Channels Television
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.
Green Tax
Alongside the tariff reductions, the Federal Government has formally introduced the Green Tax Surcharge, which took effect on July 1, 2026, as part of efforts to encourage environmental sustainability.
The environmental surcharge, ranging from two per cent to four per cent, applies only to higher-engine petrol vehicles exceeding 2,000cc.
However, mass transit buses, electric vehicles and small-engine vehicles below 2,000cc have been exempted from the surcharge, reinforcing government efforts to promote cleaner transportation and more affordable public mobility.
The broader fiscal package extends beyond the automobile sector.
Import duties on rice have been reduced from 70 per cent to 47.5 per cent, while crude palm oil duties have been lowered to 28.75 per cent.
READ ALSO: FG Reduces Import Levies On Vehicles, Customs Begins Green Tax Implementation
The government has also completely removed import duties on agricultural and manufacturing machinery to reduce production costs, while Waste PET has been added to the export prohibition list to encourage domestic recycling and strengthen Nigeria’s circular economy.
Part Of Broader Inflation-Fighting Strategy
The latest implementation builds on fiscal measures first announced in April 2026 after President Bola Tinubu directed economic managers to cushion the impact of rising global fuel prices triggered by the Middle East crisis.
According to Dada Olusegun, Special Assistant to the President on Social Media, the reforms are designed to improve affordability for Nigerians while supporting businesses.
“President Tinubu’s administration has approved a massive reduction in import duties of selected products in order to further reduce inflation, empower local businesses and increase affordability for consumers,” he said in April.
The April policy had already granted full import duty waivers for electric vehicles, mass transit buses and manufacturing machinery.
Under those measures, import duties on electric vehicles were reduced from five per cent to zero per cent, while duties on mass transit buses also fell from five per cent to zero per cent to encourage cheaper public transportation and cleaner mobility.
Import duties on manufacturing machinery were equally reduced from five per cent to zero per cent, helping manufacturers lower production costs and expand industrial output.
Additional tariff adjustments lowered raw cane sugar duties from 70 per cent to between 55 per cent and 57.5 per cent, while crude palm oil was reduced from 35 per cent to 28.75 per cent.
The government also reduced duties on steel sheets and coils from 45 per cent to 35 per cent, while glazed ceramic tiles fell from 55 per cent to 46.25 per cent to support construction and manufacturing.
To ensure businesses adjusted smoothly, the government introduced a 90-day transition phase beginning April 1, allowing importers and markets to adapt gradually without sudden disruptions.
For motorists, vehicle dealers and manufacturers alike, the latest fiscal measures signal a coordinated effort to lower business costs, expand access to transportation and strengthen economic activity. If the reduced import costs are reflected in showroom prices, more Nigerians could find vehicle ownership within reach while dealers benefit from stronger demand and improved confidence across the automotive market.
