The single sharpest fact in one or two punchy sentences. Who did what, where, when, and why it matters. Not a summary of everything — the one thing that makes someone stop scrolling. A reader who only reads this paragraph must understand what happened. The Federal Government has reduced vehicle import levies, making it easier and cheaper for Nigerians to import new and used vehicles. This move is aimed at easing the cost of imports, stimulating economic activity, and providing relief to businesses and consumers. However, the introduction of a Green Tax Surcharge on certain categories of imported vehicles has raised concerns about how the reduced levies will affect vehicle prices. The implementation of the new fiscal measures commenced under the 2026 Fiscal Policy Measures. The reduction in levies was announced by the Federal Government, and stakeholders are now waiting for clarity on the Green Tax before assessing the full impact of the policy. According to sources, the levy on new vehicles has been reduced from 20% to 10%, while the levy on used vehicles has been cut from 15% to 5%. Speaking in an interview with Vanguard, Prince Ajibola, President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, described the reduction in levies as a positive development but said its benefits would depend largely on the size of the Green Tax. “We don’t know what the surcharge is going to be. If they reduce the levy on vehicles and then introduce another surcharge, we need to know how much it is before we can say there will be any considerable change,” he said. Prince Ajibola noted that while reducing the levy on used vehicles from 15% to 5% represents a significant concession, the gains could be diminished if the Green Tax offsets the reduction. “If the surcharge is far less than what has been reduced, then it’s a plus. But if it is the same or even higher, then it has not really changed anything,” he explained. Import duties remain one of the biggest contributors to the high cost of vehicles in Nigeria, aside from foreign exchange challenges. According to Prince Ajibola, the policy has the potential to lower vehicle prices, particularly for commercial vehicles where the tariff reduction is more substantial, provided the Green Tax remains minimal. The implementation of the revised tariff structure is expected to be rolled out by the Nigeria Customs Service, with stakeholders continuing to monitor the situation. The Federal Government's move is aimed at easing the cost of imports, stimulating economic activity, and providing relief to businesses and consumers.
“If the surcharge is very little, then the reduction in levies will still be significant and consumers will feel the impact,” Ajibola said.