FG Cuts Customs Duties on New and Tokunbo Cars by Up to 67%, Aims to Lower Import Costs

The Federal Government has slashed import levies on vehicles to ease costs for importers and buyers. As of July 1, 2026, duties on new cars dropped from 20% to 10%, while charges on used vehicles fell from 15% to 5%. The Nigeria Customs Service will also introduce a Green Tax Surcharge under the 2026 Fiscal Policy Measures to support environmental sustainability. Officials say the final impact on consumer prices will depend on how high this new surcharge is set. Industry stakeholders have welcomed the duty cuts but urge transparency on the Green Tax rate. Prince Ajibola, president of the National Association of Motor Dealers, noted that lower duties could reduce prices—provided the surcharge doesn’t offset the savings.

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