The Federal Government has implemented its revised vehicle import levy, reducing charges on imported new and used vehicles to lower import costs and ease the burden on businesses and consumers.
Under the 2026 Fiscal Policy Measures, the import levy on brand-new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has dropped from 15 per cent to five per cent.
The policy also introduces a Green Tax on selected imported vehicles as part of the government’s environmental sustainability agenda.
Reacting to the development, President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, Prince Ajibola, welcomed the levy reduction but said its impact on vehicle prices would depend on the Green Tax.
According to him, if the Green Tax is minimal, consumers could benefit from lower vehicle prices, especially on commercial vehicles. However, he warned that if the surcharge is equal to or higher than the levy reduction, the policy may have little or no effect on vehicle costs.
Ajibola added that import duties and foreign exchange remain major factors responsible for the high cost of vehicles in Nigeria.
Stakeholders said they would monitor the implementation of the revised tariff structure, noting that the final effect on vehicle prices would depend on the details of the Green Tax.