FG slashes vehicle import duties: Used cars 5%, new 10% effective May
The Federal Government has cut import duties on vehicles under its 2026 fiscal policy, reducing duties on used cars from 15% to 5% and new vehicles from 20% to 10%. NCS Comptroller-General Adewale Adeniyi announced this Monday while defending the 2026 budget before the House Customs Committee, noting implementation began in May.
This policy could lower vehicle prices for consumers and importers, though Adeniyi warned it may reduce customs revenue. Lawmakers questioned whether the 5% duty will stop cargo diversion to cheaper Cotonou ports. The move supports the government's goal of boosting economic activity through lower import costs.
Despite NCS exceeding its 2025 revenue target by ₦1.15 trillion (18.9%) through ₦7.258 trillion collected, waivers on ₦34.5 trillion in imports impacted collections. With 2026 revenue targeted at ₦11.07 trillion, this duty cut signals priority on affordability over maximum customs revenue. Will you see lower vehicle prices at showrooms soon, or will other costs keep prices high?