FG Cuts Vehicle Import Levies As Dealers Await Green Tax Details

The Federal Government’s revised vehicle import levy regime has taken effect, cutting levies on new and used vehicles while introducing a Green Tax surcharge whose details are still unclear to dealers.

Under the 2026 Fiscal Policy Measures, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent. The levy on used vehicles has also been cut from 15 per cent to five per cent.

The policy is intended to lower import costs and ease pressure on businesses and consumers, but industry operators say the final effect on prices will depend on the size and structure of the Green Tax.

Vanguard quoted the National Association of Motor Dealers president and Mitchel Automobile chief executive, Prince Ajibola, as saying dealers need to know the surcharge before they can assess whether buyers will see meaningful relief.

Daily Post carried the same policy details and reported that stakeholders are watching the Nigeria Customs Service rollout for clearer guidance on how the levy reduction and Green Tax will work together.

Sources: Vanguard, Daily Post