Govt slashes Customs levies on imported vehicles

A new tariff regime which slashed the Customs levies payable on imported new and old vehicles by 50 per cent and 67 per cent respectively has kicked-off. The Federal Government reduced the duty on new and used cars as part of its 2026 fiscal policy measures, intended to bring down vehicle importation cost, easing the burden on importers and improving consumers’ access. The new fiscal measures, which took effect on July 1, form part of a broader review of Nigeria’s import tariff structure and customs regime designed to stimulate economic activity and support trade. Under the revised policy, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent and the duty on used vehicles has been cut from 15 per cent to 5 per cent. The implementation of the new regime was announced by the Nigerian Customs Service (NCS) in a statement posted on its website. It reads: “Beginning 1st July, 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% to 10% and that of used vehicles from 15% to 5% to ease the cost of vehicle importation?” The decision drew reaction from stakeholders in the maritime sector yesterday. President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, Prince Ajibola, described the government decision to reduce import levies as a welcome development. However, Ajibola told The Nation that it was too early to determine whether the policy would translate into lower vehicle costs or not. According to him, details of the new surcharge had yet to be made public. The reduction in import levies, he said remained a positive step but said that any gains could be offset if the green tax surcharge is set at a level that matches or exceeds the levy reductions. The statement reads: “If the levy on used vehicles has been reduced from 15 per cent to five per cent, that is a 10 per cent reduction, which is a good development. However, we need to know what the green tax surcharge will be before we can assess its overall impact “If the surcharge is less than the reduction, then it is a plus and we can expect some improvement in vehicle prices. “But if it is the same as or more than what has been removed, then there will be little or no difference.”