Nigeria cuts vehicle import levies, adds Green Tax amid dealer uncertainty

Nigeria’s Federal Government implemented revised vehicle import levies on July 2, 2026, cutting the duty on brand‑new cars from 20% to 10% and on used vehicles from 15% to 5%. Simultaneously, a Green Tax surcharge was introduced on selected imported vehicle categories as part of an environmental sustainability agenda. The policy aims to lower import costs, stimulate economic activity and relieve price pressure on consumers and businesses in the automotive sector.

However, automobile dealers say the full impact remains unclear because the exact rate and structure of the Green Tax have not been disclosed. Prince Ajibola, President of the National Association of Motor Dealers and CEO of Mitchel Automobile Limited, warned that if the surcharge offsets the levy cuts, vehicle prices may not fall significantly. He noted that the reduction on used vehicles is a major concession, but any substantial Green Tax could neutralise the benefit, especially for commercial vehicles where the tariff change is larger.

Industry stakeholders say they will monitor the Nigeria Customs Service rollout for clarity on the Green Tax, which will determine whether the levy cuts translate into meaningful price relief for buyers nationwide.

SOURCE: https://dailypost.ng/2026/07/02/nigerian-govt-slashes-vehicle-import-levies-introduces-green-tax/