Car dealers are showing varied reactions to the Federal Government’s decision to lower import tariffs on vehicles. During discussions with the News Agency of Nigeria (NAN) in Abuja, merchants noted that while the policy is set to lower vehicle costs and assist consumers, the final effect on pricing remains tied to broader economic conditions such as currency exchange rates.
Bashir Adeniyi, the Comptroller-General of the Nigeria Customs Service, unveiled these updates during a budget hearing before the House of Representatives. Import duties on used vehicles were slashed from 15 percent to 5 percent, while rates for new vehicles fell from 20 percent to 10 percent. Adeniyi stated this initiative supports the government’s 2026 fiscal strategy and aims to offset the Green Tax Surcharge while encouraging the use of newer, cleaner models.
Industry figures like Ayoade Olamilekan of Lekjam Auto Nig Ltd welcomed the change, expecting it to boost consumer purchasing power. However, he noted that price drops will likely lag by several months as dealers clear existing inventory purchased at older rates. Similar sentiments were shared by Olusegun Oketoyin of OloruntoFunmi Motors and Kano-based dealer Aminu Abdullahi, who suggested the policy could improve demand for new vehicles and streamline highway transit.
Challenges remain, according to other stakeholders. Idris Umar pointed to the weakening Naira as a potential barrier to realizing full cost savings, while Manga Muhammed noted that vehicles with larger engines might still face higher costs. Concerns regarding market stability were raised by Eugene Nweke of the Sea Empowerment and Research Centre, who warned that sudden policy shifts can harm investor confidence. Additionally, consultant Okey Ibeke emphasized that the final price at the point of sale depends on a mix of port fees, logistics, and valuation, rather than duty rates alone.
