Nigerians are buying imported cars again, and in a big way. According to the National Bureau of Statistics’ Foreign Trade Statistics for the first and second quarters of 2026, as analysed by Nairametrics and reported in September, the value of passenger motor car imports jumped 145.6% year-on-year to about ₦1.18 trillion in the first half of 2026, up from ₦479.26 billion in the same period of 2025.
For anyone shopping for tokunbo cars for sale in Lagos, Abuja or Port Harcourt this quarter, that headline raises a fair question: does a flood of imports mean cheaper cars, or more expensive ones? The honest answer is “it depends”, and this guide breaks down exactly what it depends on, how the 2026 import duty changes fit in, and how to work out a realistic budget before you hand over a deposit.
The Numbers Behind the Import Surge
Here is what the NBS trade data shows for passenger cars and the wider transport category, per the September reports:
- Passenger car imports, H1 2026: about ₦1.18 trillion, up 145.6% from ₦479.26 billion in H1 2025.
- Q1 2026: ₦552.34 billion (vs ₦224.58 billion in Q1 2025).
- Q2 2026: ₦624.75 billion (vs ₦254.67 billion in Q2 2025).
- Total transport equipment and parts imports: ₦3.73 trillion, up 44.2% from ₦2.59 trillion.
- Parts and accessories imports: down about 4.4% to ₦722.59 billion from ₦755.43 billion.
One important caveat: these are values in Naira, not vehicle counts. A 145.6% jump in value does not mean 145.6% more cars landed at Tin Can or PTML. Part of the increase reflects what each car costs to buy and ship once converted into Naira. Still, quarter-on-quarter growth from Q1 to Q2 suggests demand stayed firm through the first half of the year.
Why spare parts imports fell while car imports rose
The drop in parts imports is worth noticing. It suggests the growth came from complete vehicles rather than from Nigerians keeping older cars running. For buyers, that is a mild positive: more fresh stock on dealer lots generally means more choice and more room to negotiate. It does not, however, guarantee that parts for every model you buy will be easy to find at Ladipo or Apapa Road, so check parts availability before committing to a less common model.
What Changed in Import Duty on Cars in Nigeria in 2026
The surge did not happen in a vacuum. The federal government’s 2026 Fiscal Policy Measures changed how imported vehicles are taxed:
- Lower tariffs on used and new vehicles. Nigeria Customs Service Comptroller-General Adewale Adeniyi told the House of Representatives Committee on Customs in July that tariffs on used vehicles were cut from 15% to 5%, and on brand-new vehicles from 20% to 10%, with implementation starting in May 2026. Some reports describe the cut as applying to the National Automotive Council (NAC) levy rather than the base duty, so the exact line items on your assessment may differ from the headline numbers.
- A new Green Tax Surcharge from July 1, 2026. Per reporting on the fiscal measures, vehicles from 2,000cc to 3,999cc attract a 2% surcharge and vehicles of 4,000cc and above attract 4%. Cars below 2,000cc, electric vehicles, mass transit buses and locally assembled vehicles are exempt.
- Waivers for EVs and mass transit. In April 2026 the government waived import duties on electric vehicles, mass transit buses and manufacturing machinery.
Other charges still stack on top of the duty. Clearing agents and customs guides commonly list a 7% surcharge (calculated on the duty amount), 7.5% VAT, a 0.5% ECOWAS levy, and a new 4% FOB-based levy that replaced the former 1% CISS charge. Rates and how they are applied can change by circular, so always ask your agent to show you the assessment for your specific tariff line.
So, Will Tokunbo Car Prices Fall?
Not automatically. Lower tariffs reduce one slice of the landed cost, but the final price you see on a car lot is built from several moving parts. As dealers told reporters after the cut was announced, prices may not crash simply because duty fell. Here is why:
- Exchange rate: The car is bought abroad in dollars. Any weakening of the Naira between purchase and clearing can wipe out the duty saving.
- Shipping and port charges: Freight, terminal handling and demurrage are not covered by the tariff cut.
- Vehicle condition and grade: A clean, low-mileage unit always commands more than a car with accident history.
- Engine size: Anything from 2.0 litres upward now carries the Green Tax, which partly offsets the duty cut on popular SUVs and big sedans.
- Dealer margins and stock age: Dealers who imported before the cut paid the higher rates and will try to recover that cost.
The practical effect for most buyers in late 2026 is likely to be more stock and slightly more negotiating power, rather than dramatic price drops. If you are buying a small-engine sedan or hatchback (below 2,000cc), you gain the most, because you benefit from the lower tariff without paying the Green Tax.
How to Estimate Your Landed Cost Before You Buy
Whether you import directly or buy from a dealer, it helps to understand the arithmetic. Customs charges are calculated mostly on the CIF value (cost, insurance and freight). The example below uses a hypothetical CIF value purely to show how the percentages stack; it is not a price for any real car.
Illustrative breakdown: hypothetical ₦10 million CIF, used car, 2.5-litre engine
- Import duty at 5%: ₦500,000
- 7% surcharge on the duty: ₦35,000
- Green Tax at 2% (2,000–3,999cc band): about ₦200,000
- 4% FOB levy: roughly ₦400,000 or a bit less, since FOB excludes freight and insurance
- VAT, ECOWAS levy, NAC levy, terminal and agent fees: vary by assessment, port and agent
Run the same exercise on a 1.8-litre car and the Green Tax line disappears. That is a real saving on a family car budget, and one reason buyers chasing the best fuel efficient cars in Nigeria are drifting towards sub-2.0-litre models. Treat any figure here as a starting point only; your agent’s actual assessment is what counts.
Smart Moves for Tokunbo Buyers This Quarter
1. Favour engines under 2,000cc
Beyond avoiding the Green Tax, smaller engines cost less to fuel. With petrol prices still a major monthly expense (see our October 2026 petrol price update), the running-cost saving adds up quickly over a year of Lagos traffic.
2. Buy from a registered dealer
More imports also means more room for bad actors. NADDC’s dealer registration push is meant to make it easier to verify who you are buying from. Our guide to NADDC dealer registration explains what to check.
3. Verify customs papers before paying
Ask for the customs release documents and verify them through the Nigeria Customs Service’s official verification channels. A car with unpaid or fake duty papers can be seized later, and the loss falls on you, not the seller.
4. Get a pre-purchase inspection
A surge in imports can include flood-damaged or heavily repaired units. Pay an independent mechanic to check the chassis, airbags, electronics and any signs of water damage. It costs a fraction of what a hidden fault would.
5. Compare cash vs a car loan in Nigeria
If you are financing, compare the total repayment, not just the monthly figure. Many lenders now finance tokunbo vehicles, but interest, insurance and tracking fees can add significantly to the final cost. Factor in comprehensive car insurance in Nigeria too, since most lenders require it.
6. Consider the alternatives
With EV import duties waived and CNG conversion being pushed as part of the federal transport-fare plan from October 1, 2026, some buyers may find a CNG-ready or electric option cheaper to run over five years. The upfront cost is usually higher and charging or refuelling infrastructure is still thin outside major cities, so weigh this against where you actually drive.
Honest Drawbacks to Keep in Mind
- The trade data shows import value, not prices on the lot; nobody can promise a specific price drop from it.
- Tariff changes can be reviewed again, and the Green Tax adds cost to popular SUVs.
- Exchange-rate swings can erase duty savings within weeks.
- Higher import volumes can bring more poor-quality stock alongside good cars.
Key Takeaways and FAQ
Key takeaway: The ₦1.18 trillion import figure signals strong demand and more stock, while 2026 tariff cuts lower one part of the landed cost. Buyers of sub-2,000cc tokunbo cars stand to benefit most. Bigger SUVs gain less because of the new Green Tax.
Did tokunbo car prices drop after the import duty cut?
Not across the board. The duty cut reduces one component of landed cost, but exchange rates, shipping, condition and dealer margins still drive the final price. Expect more room to negotiate rather than a guaranteed drop.
What is the import duty on cars in Nigeria now?
The Customs CG stated in July 2026 that used vehicles now attract 5% (down from 15%) and new vehicles 10% (down from 20%), with other levies and VAT on top. Confirm the current rate for your vehicle’s tariff line with a licensed clearing agent or the Nigeria Customs Service.
Which cars pay the Green Tax?
Vehicles of 2,000cc and above: 2% for 2,000–3,999cc and 4% for 4,000cc and above. EVs, mass transit buses, locally assembled vehicles and cars below 2,000cc are exempt.
Are electric cars exempt from import duty?
The federal government waived import duties on electric vehicles in April 2026, and EVs are exempt from the Green Tax. Clearing and other charges may still apply.
Figures in this article are attributed to the National Bureau of Statistics (via Nairametrics and Legit.ng reporting) and statements by the Nigeria Customs Service. Vehicle prices, import duties and specs change frequently in Nigeria — always confirm current figures with the dealer or official source before buying.
