The Federal Government has reduced Customs import duties on vehicles by up to 50%, effective from Monday, June 29, 2026, in a bid to cushion the impact of the new Green Tax Surcharge that takes effect on July 1.
Under the revised rates, the duty on brand new vehicles has been slashed from 20% to 10%, while the duty on used vehicles (popularly known as Tokunbo) dropped from 15% to 5%.
The Nigeria Customs Service confirmed the changes, which were approved by the Federal Ministry of Finance. The reduction is intended to ease the financial burden on vehicle importers as the country introduces environmental levies aimed at promoting cleaner transportation.
Green Tax Targets High-Emission Engines
The new Green Tax Surcharge will apply to vehicles with larger engine capacities:
– Vehicles with engines between 2,000cc and 3,999cc will attract a 2% surcharge.
– Those with engines of 4,000cc and above will pay a 4% surcharge.
Electric vehicles, locally manufactured vehicles, and mass transit buses are exempted from the levy. The tax is specifically designed to discourage the importation of high-emission vehicles.
The Nigeria Customs Service’s National Public Relations Officer, Abdullahi Maiwada, explained that the surcharge targets luxury SUVs, performance cars, and heavy-duty pickups, including popular models such as the Toyota Land Cruiser, Volvo XC90, Mercedes-Benz GLE, Porsche 911, and Honda Civic Type R.
The simultaneous reduction in import duties and introduction of the Green Tax reflects the government’s attempt to balance revenue generation with environmental sustainability objectives in the automotive sector. Importers and dealers are expected to adjust their pricing strategies in line with the new regime.
