The federal government has activated its 2026 Fiscal Policy Measures, slashing import levies on vehicles to boost the economy. New vehicle levies dropped from 20 percent to 10 percent, while used vehicle charges decreased from 15 percent to five percent. These changes seek to lower costs for both businesses and the general public.
However, a new Green Tax surcharge on specific imports has created uncertainty. Prince Ajibola, head of the National Association of Motor Dealers, noted that while the levy reduction is helpful, the actual benefit for consumers hinges on the unknown cost of the environmental surcharge. If the new tax equals or exceeds the savings from the levy reduction, vehicle prices may remain stagnant.
Ajibola, who also serves as CEO of Mitchel Automobile Limited, pointed out that alongside foreign exchange issues, import duties remain a primary driver of high vehicle costs in Nigeria. He expressed cautious optimism that prices could drop, especially for commercial vehicles, if the government keeps the Green Tax minimal. Industry participants are now watching how the Nigeria Customs Service applies these new tariffs to see if the policy truly lowers market prices.
