If you have been waiting for a sign that buying an electric car in Nigeria is becoming realistic, the federal government’s 2026 tariff changes are the closest thing yet. Electric vehicles and mass transit buses were put on a zero import duty list, while ordinary petrol cars still face one of the heaviest tariff stacks in the market. This guide explains what changed, what you still have to pay when you import or buy an EV, and whether the savings are as big as the headlines suggest.
What exactly changed for EV import duty in Nigeria?
According to a statement posted on 13 April 2026 and reported by the Guardian, the federal government cut import duty on electric vehicles from 5% to 0%, and did the same for mass transit buses. The same package lowered the import duty on fully built passenger vehicles from 70% to 40%, as part of measures the government said were meant to ease inflation and make transport cheaper and cleaner.
The Nigeria Customs Service followed up in early July 2026 with an update under the 2026 Fiscal Policy Measures. As reported by Channels Television, it confirmed that EVs and mass transit buses are fully exempted from import duties, that the import levy on new vehicles fell from 20% to 10%, and that the levy on used vehicles fell from 15% to 5%. The Customs update also said the Green Tax Surcharge began on 1 July 2026.
The quick comparison
- Electric vehicles: import duty 5% to 0%.
- Fully built petrol and diesel passenger cars: import duty 70% to 40%.
- Import levy, new vehicles: 20% to 10%.
- Import levy, used vehicles: 15% to 5%.
- Green tax: a 2% surcharge was reported on larger-engine vehicles (2,000cc and above), according to BusinessDay. EVs have no engine capacity, and reports describe them as covered by the exemption.
Why the old 5% duty on EVs was never the real problem
The previous 5% rate looked low, but it was only one piece of the bill. A buyer of a fairly used EV still had to cover shipping, insurance, port charges, clearing agent fees and registration, all priced against a weak Naira. Removing the duty helps, yet the biggest cost drivers for an imported car remain the exchange rate and the purchase price abroad. This is also the point made by several analysts quoted by BusinessDay on the general car tariff cut: exchange rates, shipping and port charges matter at least as much as the duty headline.
What an EV import still costs: a worked illustration
Because Naira prices move constantly, here is a simple illustration rather than a quote. Suppose a used EV is bought abroad for the equivalent of $15,000, with roughly $2,500 added for auction fees, inland transport, insurance and shipping. Your CIF value (the cost, insurance and freight figure Customs uses) would be about $17,500. At an assumed exchange rate of ₦1,500 to the dollar, that is about ₦26.25 million.
- Import duty: 0% on a qualifying EV, so nothing here.
- Customs levies: some small levies and port charges may still apply. Confirm the current list with a licensed clearing agent.
- Clearing agent, terminal handling and registration: budget several hundred thousand Naira, depending on the port and agent.
- Battery health risk: an older EV may need a battery repair or replacement later, which can run into millions of Naira.
Compare that with a conventional used car at the same CIF value. At the 40% duty rate alone, the duty would add roughly ₦10.5 million on the same ₦26.25 million CIF, before levies and the green tax on bigger engines. That gap is the real reason the EV exemption matters. These numbers use an assumed exchange rate and are not a price quote.
Used (tokunbo) EVs versus new EVs
Reports on the policy describe the exemption as applying to electric vehicles generally, and importers have pointed to used units from the US, Europe and Asia as the cheapest route in. The usual tokunbo cautions apply with extra force on EVs:
- Always request a VIN history report to check for flood damage, a branded title and odometer rollback.
- Ask for a battery state-of-health report, not just the mileage.
- Confirm the car is a pure battery EV. Plug-in hybrids may be classified differently, so ask your clearing agent before you pay for shipping.
- Check the charging port type, since not every connector standard suits local chargers.
The tokunbo market itself is booming. Nairametrics reported that Nigeria’s car imports rose 146% to ₦1.18 trillion in the first half of 2026, which tells you demand for imported vehicles is strong, and dealers are racing to meet it.
Running cost: where EVs can win or lose in Nigeria
Buying cheaper is only half the story. An EV’s advantage is cheap energy per kilometre, but Nigerian owners face two practical limits.
Charging at home
If you have steady power from the grid or solar and an inverter, home charging can cost far less per kilometre than petrol. If your area has long outages, you will either need a solar and battery setup or you will lean on public chargers, which are still limited. We covered this in more detail in our look at whether the grid can handle EVs.
Public charging
Charging stations are growing, mostly in Lagos and Abuja, but you should plan your regular routes before buying. If you drive long distances between cities, a petrol car, a hybrid or a CNG conversion may still suit you better today.
Servicing and spare parts
EVs have fewer moving parts, so routine servicing is simpler. The catch is that EV-trained technicians and parts are scarce outside the main cities. Ask the seller about warranty, local service support and battery replacement cost before you commit.
EV, hybrid, CNG or petrol: who should consider what?
- Lagos or Abuja commuter with home power: an EV is now worth a serious look.
- Ride-hailing or delivery driver on tight margins: compare the full cost, including charging downtime, against a CNG conversion or a fuel-efficient petrol car.
- Frequent inter-state traveller: a hybrid or efficient petrol car is safer until charging spreads.
- Fleet or business owner: the zero duty on EVs and electric transit buses may change your numbers, so run a proper cost model.
Risks and drawbacks to weigh honestly
- Policy can change. Tariff and levy decisions have been revised repeatedly. Confirm the current schedule before you pay for a vehicle.
- Exchange rate exposure. If the Naira weakens between purchase and clearing, your savings shrink.
- Battery condition. The battery is the most expensive part of a used EV.
- Charging access. Without reliable power at home or work, an EV is a hard daily car.
Frequently asked questions
Is there really no import duty on electric cars in Nigeria? Reports of the 2026 Fiscal Policy Measures say electric vehicles are fully exempted from import duties. Other charges, such as levies, port fees and agent costs, may still apply.
Does the exemption apply to used EVs? Reports describe the exemption for electric vehicles generally, but confirm with Customs or a licensed agent how your specific car is classified.
Did petrol car duty also fall? Yes. Duty on fully built passenger vehicles was reported cut from 70% to 40%, with a 2% green tax on larger engines.
Will EV prices in Nigeria drop immediately? Not necessarily. Dealer pricing depends on the exchange rate, shipping and stock already bought at old costs.
Key takeaway
Zero import duty makes imported EVs noticeably cheaper than comparable petrol cars on paper, but your real cost still depends on the dollar rate, the battery’s condition and whether you can charge reliably. Run the full landed-cost sum before you buy, and do not rely on a dealer’s headline price.
Disclaimer: vehicle prices, import duties and specs change frequently in Nigeria. Always confirm current figures with the dealer, a licensed clearing agent or the Nigeria Customs Service before buying. The cost example above is an illustration with assumed figures, not a quote.
