Lower vehicle import levies have now taken effect in Nigeria, giving buyers some hope that car prices may come down. But dealers say it is still too early to celebrate because the Federal Government has also introduced a green tax surcharge on some imported vehicles.
Until the government explains how much the new tax will add, dealers and buyers may not know if cars will actually become cheaper.
Nigerian Dealers Wait for Green Tax Details
The Federal Government has started using the new vehicle import levy rates under the 2026 fiscal policy measures. In accordance with the new rule, the levy on new vehicles has dropped from 20% to 10%, while the levy on used vehicles has fallen from 15% to five per cent.
The move is expected to reduce import costs, support businesses and give consumers some relief. For people planning to buy tokunbo cars, it could make imported vehicles slightly cheaper if other charges do not cancel out the reduction.
However, the new green tax surcharge has made the price impact less clear. The tax will apply to some imported vehicles as part of the government’s environmental plan, but dealers say they still need details on how much it will cost.
Prince Ajibola, President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, said the levy cut is a good move. But he explained that buyers will only feel the benefit if the green tax does not take back most of the reduction.
He added that import duties remain one of the major reasons vehicles are expensive in Nigeria, apart from foreign exchange pressure. Commercial vehicles may benefit more from the policy if the surcharge stays low.
For now, buyers still need to be careful before expecting major price drops. A lower import levy does not automatically mean cheaper cars at car stands. Customs charges, exchange rates, dealer costs and the green tax will still shape the final price.
Dealers are now waiting for clearer details as the Nigeria Customs Service begins using the revised tariff structure. The final impact will depend on whether the green tax is small enough to allow buyers to enjoy the levy reduction.
First-Time Car Importing Can Look Cheap Until the Extra Costs Start
Importing a car for the first time can look like the smart way to save money, especially when auction prices seem far cheaper than what dealers sell in Nigeria. X threads acting as simple guides can also make the process look straightforward and easy: bid, win, ship & clear and drive.
But sometimes the real cost can start after the excitement of winning a car. Auction fees, dealer charges, trucking, shipping & clearing, repairs and wrong paperwork can quickly change the budget. Even experienced importers still run into delays, driver issues, port problems and extra payments.
*Kelvin, a first-time importer, learnt this after entering the auction process himself. The cars looked affordable at first, but the hidden costs and repair issues made the process more stressful than expected.
Before you try to import a car yourself, read the full article on Kelvin’s experience and explore more car importing guides on our website.
* Names have been changed to preserve anonymity
