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Nigeria Customs Slashes Vehicle Import Tariffs, Sets ₦11tn Revenue Goal
🇳🇬 Nigeria /Economy & Trade

Nigeria Customs Slashes Vehicle Import Tariffs, Sets ₦11tn Revenue Goal

From Premium Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Nigeria's Customs Service has reduced import duties on new and used vehicles as part of its 2026 fiscal policy.
  • The duty on used cars dropped from 15% to 5%, and on new cars from 20% to 10%, aiming to boost economic activity.
  • Officials acknowledged the reduction might impact revenue but expressed optimism it would increase overall collections and discourage port diversion.

Nigeria's Customs Service has significantly lowered import duties on vehicles, a move welcomed by lawmakers as a positive step for citizens. The Comptroller-General, Adewale Adeniyi, announced the revised tariff regime on Monday, cutting import duty on used vehicles from 15% to 5% and on new vehicles from 20% to 10%.

We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection.

— Adewale AdeniyiThe Comptroller-General of the Nigeria Customs Service explaining the rationale behind the tariff review.

These adjustments are part of the government's 2026 fiscal policy measures, intended to stimulate economic activity. However, Adeniyi acknowledged the potential for reduced customs revenue from vehicle imports, while also expressing confidence that the overall revenue collection would increase.

Conversely, during the same tariff measures that were given to us, tariffs on vehicles and levies on vehicles have been reduced significantly. For used vehicles, the tariff has been reduced from 15 per cent to 5 per cent, and for brand-new vehicles, from 20 per cent to 10 per cent. So, we believe that this is something that may also negatively affect revenue.

— Adewale AdeniyiAdeniyi acknowledging the potential revenue impact of the reduced import duties.

Lawmakers questioned whether the reduction would be enough to prevent importers from using neighboring ports, like Cotonou, a common practice driven by high charges. Adeniyi confirmed the new structure began implementation in May. The chairman of the House Committee on Customs and Excise, Leke Abejide, praised the policy, stating it fulfills a long-standing demand from Nigerians for lower vehicle import duties.

If five per cent has been reduced from the fee that is paid when you import goods into the country, why then do people still move their goods to Cotonou?

— Alex MascotA lawmaker questioning the effectiveness of the tariff reduction in preventing port diversion.

Separately, Adeniyi reported that the Nigeria Customs Service generated ₦7.258 trillion between January and December 2025, exceeding its target by over ₦1.153 trillion. He noted that revenue collection faced constraints from suspended excise duties, a paused green tax, and fiscal incentives for local production.

We believe that these measures will increase our revenue collection.

— Adewale AdeniyiAdeniyi's response to lawmakers regarding the potential impact of the tariff reduction.
DistantNews Editorial

Originally published by Premium Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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