Import Duty on Cars in Nigeria: 2026 Real Cost

If you are planning to bring in a car this year, the biggest question is no longer just “which model?” but “what will it cost me at the port?” The rules on import duty on cars in Nigeria changed several times in 2026, and the headlines have been confusing: some reports say duties were cut, others say tokunbo cars have become more expensive. Both can be partly true. This guide breaks down what has been reported, how the charges stack up, and what to check before you pay a clearing agent.

What changed in 2026

According to a BusinessDay report dated 29 June 2026, the Nigeria Customs Service (NCS) announced that the Ministry of Finance had directed a cut in vehicle duties. The reported changes are:

• New vehicles: duty reduced from 20% to 10%.
• Used (tokunbo) vehicles: duty reduced from 15% to 5%.
• Earlier, in April 2026: the overall tariff on fully built passenger vehicles was reported to have fallen from 70% to 40%.

The Customs Comptroller-General, Adewale Adeniyi, reportedly told the House Committee on Customs and Excise that the revised regime began to be implemented in May 2026 under the 2026 fiscal policy, and acknowledged that the cuts may reduce vehicle-related revenue. Lawmakers welcomed the move, though one member noted that high overall clearing costs still push some importers towards Cotonou in the Benin Republic.

The new Green Tax surcharge

Alongside the cut came a new engine-size-based Green Tax Surcharge, reported to take effect on 1 July 2026. Per the NCS, it is meant to discourage high-emission imports and encourage cleaner vehicles:

• Below 2,000cc: exempt.
• 2,000cc to 3,999cc: 2% levy.
• 4,000cc and above: 4% levy.
• Exempt categories: electric vehicles, approved mass transit buses and locally manufactured vehicles.

In practice, a 2.5-litre Toyota Camry would fall in the 2% band, while a large V8 SUV such as a Land Cruiser would be in the 4% band, according to examples cited in trade reports. Dealers have said the surcharge may wipe out part of the savings on bigger SUVs, pickups and luxury cars, while smaller sedans and crossovers under 2.0 litres benefit most.

Note that hybrids are not automatically exempt: if the petrol engine is above 2,000cc, the surcharge can still apply. Engine size also varies by model year and trim, so confirm it from the VIN or manufacturer specification rather than assuming.

How the charges stack up on a tokunbo car

Duty is only one line on the bill. Trade reports describe the charges on a used import as a combination of the following, though exact rates and the values they apply to have differed between sources:

1. Customs import duty on the CIF value (cost, insurance and freight).
2. A surcharge on the duty (reported as 7% of the duty amount).
3. National Automotive Council (NAC) levy, reported as 15% for used cars and 20% for new ones in one clearing guide.
4. ECOWAS Trade Liberalisation Scheme levy of 0.5%, for vehicles sourced within West Africa.
5. VAT at 7.5%.
6. Green Tax if the engine is 2,000cc or larger.
7. Other costs: a reported 4% FOB levy on imports, plus shipping, terminal handling, agent fees and port charges.

One Tribune report, published in March 2026 before the duty cut was announced, put total statutory charges at roughly 42% to 45% of CIF value and warned of higher clearing costs after customs fees were reportedly doubled from 1 January 2026. That is why you will find articles with seemingly opposite conclusions: they were written at different points in a policy that kept moving. The honest takeaway is that the headline duty rate has fallen, but the total landed cost depends on the whole stack, not one number.

What this means for car prices

Nobody can promise a lower sticker price at your local dealer. Nigerian vehicle prices also respond to the exchange rate, shipping rates and demand, and dealers often hold stock cleared under the old rates. Here is a sensible way to think about it:

• Small and mid-size cars (under 2.0L): most likely to see real savings, since the Green Tax does not apply.
• Mid-size SUVs and sedans (2.0L to 3.9L): savings are partly offset by the 2% surcharge.
• Large SUVs and pickups (4.0L and above): expect the smallest benefit.
• Electric vehicles: exempt from the Green Tax, which strengthens the case for the cost of owning an EV in Nigeria over the long run, although charging access remains the practical hurdle.

Buying tips before you import or pay a dealer

• Ask for a written breakdown of duty, levies, VAT, Green Tax and agent fees, and compare at least two clearing agents.
• Check the engine capacity from the VIN, so you know which Green Tax band applies.
• Ask about the shipping date. Clearing agents have raised concerns about cars already in transit before 1 July 2026, and how those are treated is something to confirm with your agent.
• Verify the vehicle through Customs vehicle verification and your insurer before paying the final balance.
• Budget for the unexpected: demurrage, delays and valuation disputes can add to the final bill.
• Financing: if you plan to use a car loan, ask whether the lender will finance clearing costs or only the purchase price.

Should you buy a tokunbo car or a new one now?

Because new-car duty fell from 20% to 10% and used-car duty from 15% to 5% in the reported changes, the gap between a new and a fairly used car at the port is narrower in percentage terms than before. For buyers who want a warranty and easy access to spare parts, a new car from an authorised dealer may be worth pricing alongside a tokunbo unit. Locally assembled vehicles are also exempt from the Green Tax, which is worth factoring in if you are comparing options.

Key takeaways and FAQ

Key takeaway: reported duty cuts (new 20% to 10%, used 15% to 5%) lower one part of the bill, but the Green Tax on engines of 2,000cc and above, the NAC levy, VAT and clearing fees still determine your final landed cost.

Is the Green Tax charged on tokunbo cars?

Yes. It is based on engine size, not on whether the car is new or used, and it applies to engines of 2,000cc and above.

Are electric cars exempt?

Per the Nigeria Customs Service, electric vehicles are excluded from the Green Tax surcharge.

Will car prices in Nigeria fall?

Not automatically. Exchange rates, shipping costs and dealer stock levels all play a role, so compare quotes rather than expecting a uniform drop.

Disclaimer: vehicle prices, import duties and specs change frequently in Nigeria, and reports on the current rates have differed. Always confirm current figures with the dealer, a licensed clearing agent or the Nigeria Customs Service before buying.