The Nigerian government has introduced significant reductions in vehicle import duties as part of its fiscal policy measures aimed at making cars more affordable for citizens and stimulating economic activity.The import levy on new vehicles has been cut from 20% to 10%, while used vehicles now face a 5% levy instead of 15%.Customs duties for fully built passenger vehicles have also dropped from 70% to 40%, expected to lower landing costs and reduce prices for consumers.These reforms are designed to benefit both vehicle owners and dealers by increasing demand and improving market confidence.

Alongside these tariff cuts, a Green Tax Surcharge of 2-4% has been imposed on higher-engine petrol vehicles over 2,000cc, with exemptions for electric vehicles, mass transit buses, and small-engine cars.The measures are part of a broader strategy to combat inflation, support local businesses, and promote sustainable transportation.

Additional fiscal adjustments include reduced import duties on rice, crude palm oil, and agricultural machinery, while Waste PET is now banned from export to boost recycling.The 90-day transition phase allows importers to adapt smoothly, ensuring businesses can adjust without disruption.If showroom prices reflect these reductions, more Nigerians could achieve car ownership, while dealers benefit from stronger market activity.