The Nigeria Customs Service has begun implementing the Federal Government’s new fiscal policy measures, introducing a Green Tax Surcharge while reducing import levies on vehicles and granting zero levy on electric vehicles.
The policy took effect on July 1, 2026, as part of the 2026 Fiscal Policy Measures approved by the Federal Government to support economic growth, improve transport affordability and encourage the adoption of cleaner energy technologies.
Customs spokesperson Abdullahi Maiwada confirmed the commencement of the policy.
Under the new tariff structure, 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 been cut from 15 per cent to five per cent.
Electric vehicles will no longer attract any import levy, effectively reducing the rate to zero in a move aimed at accelerating Nigeria’s transition to environmentally sustainable transportation.
In a public notice announcing the implementation, the Customs Service said the reforms represent a major shift in the country’s fiscal and trade policy by balancing revenue generation with environmental protection and economic development.
The service explained that the newly introduced Green Tax Surcharge is designed to support the government’s broader climate agenda by encouraging environmentally responsible consumption and promoting sustainable development. Specific rates for the surcharge were not disclosed in the notice.
The reduction in import levies is expected to lower the overall cost of vehicle importation, potentially reducing market prices for automobiles and easing transportation costs for businesses and individuals.
Industry observers say lower import charges could also stimulate trade, encourage fleet renewal among transport operators and benefit sectors that rely heavily on road transportation.
The zero levy on electric vehicles is regarded as one of the most significant aspects of the reform, as it is expected to encourage investment in cleaner mobility solutions, reduce carbon emissions and align Nigeria with global efforts to promote green transportation.
According to the Customs Service, the measures could improve access to modern vehicles, reduce operating costs for businesses and support the gradual replacement of older, less environmentally friendly automobiles with cleaner alternatives.
The implementation, the agency said, reflects the government’s commitment to using fiscal policy to stimulate economic activity while advancing environmental sustainability and supporting Nigeria’s long-term development objectives.
