The Federal Government has reduced vehicle import levies to lower prices, while also flagging off the newly introduced Green Tax.
An update by the Nigeria Customs Service (NCS) on Wednesday noted that the Green Tax Surcharge implementation would begin on July 1, 2026, as part of the 2026 Fiscal Policy Measure to support environmental sustainability, while also reducing the import levy on new vehicles from 20 per cent to 10 per cent and that of used vehicles from 15 per cent to five per cent to ease the cost of vehicle importation.
The implementation commenced under the 2026 Fiscal Policy Measures and also features key guidelines, such as the reduction of duties for fully built passenger vehicles from 70 per cent to 40 per cent.
A new environmental surcharge ranging between two per cent and four per cent applies to higher-engine petrol vehicles (exceeding 2,000cc).
Mass transit buses, electric vehicles, and small-engine cars less than 2000cc are exempted.
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Import duties have also been significantly slashed for essential items, with rice duties dropping from 70 per cent to 47.5 per cent and crude palm oil to 28.75 per cent.
Under the measures, import duties on agricultural and manufacturing machinery have been completely removed, while Waste PET has been added to the export prohibition list to prioritise the domestic recycling industry.
