Fed Govt slashes vehicle import levy

• Fiscal measures take effect

The Federal Government has reduced the import levy on both new and used vehicles as part of its 2026 Fiscal Policy Measures

The  move, the government said, is aimed at lowering the cost of vehicle importation, easing the burden on importers and improving access to vehicles for consumers.

The new fiscal measures, which took effect on July 1 2026, 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% to 10%, while the levy on used vehicles has been cut from 15% to 5% per cent.

According to government, “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?”

Importers and dealers have since welcomed the development, describing it as a positive step forward.