Customs Begins Implementation of Green Tax, Slashes Import Levy on Vehicles

James Emejo in Abuja

The Nigeria Customs Service (NCS) has commenced the implementation of the federal government’s new fiscal policy measures, introducing a Green Tax Surcharge while significantly reducing import levies on vehicles.

The policy aims to promote environmental sustainability and lowering the cost of vehicle importation.

Deputy Comptroller General of Customs/National Public Relations Officer, National Public Relations Officer, Mr. Abdullahi Maiwada, confirmed take-off of the new policy initaitive.

The tax took effect from July 1, 2026, and forms 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.

Under the new tariff regime, 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 slashed from 15 per cent to five per cent.

In addition, electric vehicles (EVs) will no longer attract any import levy, effectively reducing the rate to zero in a bid to accelerate the country’s transition to environmentally sustainable transportation.

The NCS announced the commencement of the policy implementation in a public notice, stating that 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 introduction of the green tax surcharge is expected to complement the government’s broader climate agenda by encouraging more environmentally responsible consumption and supporting sustainable development initiatives.

Although the service did not provide details of the applicable rates in the notice, it explained that the measure is designed to advance environmental sustainability.

The sharp reduction in import levies is expected to lower the overall cost of vehicle importation, potentially translating into reduced market prices for automobiles and providing relief to businesses and individuals grappling with rising transportation costs.

Also, lower import charges could stimulate trade activities, improve fleet renewal by transport operators, and support sectors that depend heavily on road transportation.

The zero import levy on electric vehicles is seen as one of the most significant features of the new tariff structure, as it is expected to encourage greater investment in cleaner mobility solutions, reduce carbon emissions, and align Nigeria with global efforts to promote green transportation.

According to the Customs Service, the reforms have the potential to improve livelihoods by making vehicle ownership more affordable while supporting businesses through lower operating costs.

The measures are also expected to enhance efficiency in the transportation sector, improve access to modern vehicles, and encourage the gradual replacement of older, less environmentally friendly automobiles with cleaner alternatives.

The implementation underscores the government’s commitment to deploying fiscal policy as a tool for stimulating economic activity while advancing environmental sustainability and supporting Nigeria’s long-term development objectives.