Nigeria cuts vehicle import duties, launches green tax from July 2026
The Federal Government, through the Nigeria Customs Service, has slashed vehicle import levies effective July 1, 2026, while introducing a new Green Tax surcharge to promote environmental sustainability. Import duties on new vehicles drop from 20% to 10%, and on used vehicles from 15% to 5%. Duty on fully built passenger vehicles falls from 70% to 40%. An environmental surcharge of 2%-4% applies to petrol vehicles with engines over 2,000cc; mass transit buses, electric vehicles, and cars under 2,000cc are exempt. The policy also cuts import duties on rice from 70% to 47.5%, crude palm oil to 28.75%, and removes duties entirely on agricultural and manufacturing machinery. Waste PET has been added to the export prohibition list to boost domestic recycling.
These changes aim to lower vehicle prices and encourage greener transport while supporting local industry and recycling. For importers and buyers, the duty cuts could reduce vehicle costs significantly, though buyers of larger petrol cars will face the new surcharge. Importers of machinery and agricultural equipment now face zero import duty, potentially lowering production costs. Importers should note the July 1 start date and check engine capacity to determine if the Green Tax applies. Importers of rice and palm oil will see reduced costs, while those handling PET waste must now retain it for local recycling.
Will you benefit from lower vehicle import costs, or will the new Green Tax affect your vehicle choice? How might the duty removal on machinery impact your business or household expenses?