New, tokunbo cars prices set to fall as FG slashes Customs duties on imported vehicles

The Federal Government has introduced a new tariff policy that reduces Customs charges on imported vehicles.

Under the new policy, the levy on new vehicles has been reduced by 50 percent, while the levy on used vehicles has been reduced by about 67 percent.

The changes took effect on July 1, 2026, as part of the government’s fiscal policy measures aimed at reducing the cost of vehicle importation, easing the burden on importers, and making vehicles more affordable for consumers.

According to the new policy:

The import levy on new vehicles has been reduced from 20 percent to 10 percent.

The import levy on used vehicles has been reduced from 15 percent to 5 percent.

The Nigeria Customs Service (NCS) announced the implementation of the policy on its website.

The Customs Service also stated that a Green Tax Surcharge will be introduced as part of the 2026 Fiscal Policy Measures to support environmental sustainability.

The statement said:

“Beginning July 1, 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 Fiscal Policy Measures to support environmental sustainability, while also reducing the import levy on new vehicles from 20 percent to 10 percent and that of used vehicles from 15 percent to 5 percent to ease the cost of vehicle importation.”

The announcement has generated reactions from stakeholders in the maritime and automobile sectors.

President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, Prince Ajibola, welcomed the reduction in import levies.

However, he said it is still too early to determine whether the policy will lead to lower vehicle prices because details of the Green Tax Surcharge have not yet been made public.

According to him, the reduction in levies is a positive development, but its benefits could be cancelled out if the new surcharge is set too high.

He explained that if the Green Tax Surcharge is lower than the amount removed from the import levies, vehicle prices could decrease.

However, if the surcharge is equal to or higher than the reduction, consumers may not see any significant difference in vehicle costs.