FG Slashes Vehicle Import Duties Under 2026 Policy
Vehicle import duties have been reduced as the government introduces new fiscal measures to support economic activity and trade.
The Federal Government has reduced vehicle import duties on both new and used vehicles as part of its 2026 fiscal policy, a move aimed at supporting economic activity and easing the cost of vehicle imports.
Speaking before the House of Representatives Committee on Customs and Excise, Nigeria Customs Service (NCS) Comptroller-General Adewale Adeniyi said the duty on used vehicles had been reduced from 15 per cent to five per cent, while the rate for brand-new vehicles had dropped from 20 per cent to 10 per cent. He explained that the revised tariff forms part of the government’s wider fiscal measures for 2026, although it could reduce customs revenue from vehicle imports.
Adeniyi said, “We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection.” He added, “Conversely, during the same tariff measures that were given to us, tariffs on vehicles and levies on vehicles have been reduced significantly. For used vehicles, the tariff has been reduced from 15 per cent to 5 per cent, and for brand-new vehicles, from 20 per cent to 10 per cent. So, we believe that this is something that may also negatively affect revenue.”
Lawmakers welcomed the policy but questioned whether the lower vehicle import duties would discourage importers from clearing goods through neighbouring ports such as Cotonou. Adeniyi told the committee that the revised tariff structure began implementation in May.
The NCS also reported generating ₦7.258 trillion in 2025, exceeding its annual revenue target by ₦1.153 trillion, an increase of 18.89 per cent. However, Adeniyi said several government policies, including tax waivers, incentives for healthcare products, and support for Compressed Natural Gas (CNG) and electric vehicles, affected revenue collection during the year.
Looking ahead, the Nigeria Customs Service is targeting ₦11.074 trillion in revenue for 2026. The agency plans to achieve this through greater automation using the Unified Customs Information System (UCIS), expanded compliance audits, improved border surveillance, stronger stakeholder engagement and the implementation of new fiscal measures, including the planned return of the green tax.
The NCS has also proposed a ₦1.235 trillion expenditure budget for 2026, covering personnel costs, overheads and capital projects.
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