2026 Customs Duty Rates: Why ‘Tokunbo’ cars will cost Nigerians more

Femi Fabunmi

The cost of buying tokunbo (foreign-used) cars in Nigeria is set to rise significantly in 2026 following new customs duty rates introduced by the

Nigeria Customs Service (NCS).
Under the updated import framework, several statutory charges now apply to vehicles brought into the country.

These include a 20 percent import duty, a 15 percent National Automotive Council (NAC) levy on used vehicles, and a 7.5 percent Value Added Tax (VAT).

Combined, these charges mean that importers now pay between 42 percent and 45 percent of a vehicle’s CIF value  the total cost including insurance and freight  before accounting for other expenses such as shipping, terminal handling, and clearing agent fees.

For example, a tokunbo vehicle with a CIF value of ₦10 million could attract over ₦4 million in customs-related charges alone.

These additional costs inevitably get transferred to the final buyer, making foreign-used cars more expensive for Nigerians.

Another new cost layer is the four percent Free-On-Board (FOB) levy introduced on all imports.

The levy replaces the previous one percent Comprehensive Import Supervision Scheme (CISS) charge and significantly increases the cost of clearing vehicles.

With the new levy, a car valued at ₦20 million will now attract about ₦800,000 as FOB charges, compared to the ₦200,000 previously paid under the old system.

Industry stakeholders warn that the cumulative effect of the revised duties and levies could increase the total cost of clearing imported vehicles and other cargo by as much as 40 percent.

The policy changes are linked to Nigeria’s adoption of the ECOWAS Common External Tariff (CET) 2022–2026 framework, which seeks to encourage local vehicle assembly, reduce reliance on imported used cars, and increase government revenue.

However, for many Nigerians who rely on tokunbo vehicles as a more affordable alternative to new cars, the new customs structure means higher prices and fewer affordable options in the automobile market.

As a result, prospective buyers may need to budget significantly more when purchasing tokunbo vehicles in 2026.