If you have been waiting for tokunbo prices to crash since the Federal Government cut vehicle import levies on 1 July 2026, this is the honest status report. The levy cut is real. The savings are real but smaller than the headlines suggested — and a second set of charges introduced on the same day claws some of it back on bigger engines. Here is what it actually costs to clear a used car in Nigeria right now, and how to work out your own number before you commit money.
What changed on 1 July 2026
As part of the 2026 Fiscal Policy Measures, the Federal Government reduced the National Automotive Council (NAC) levy on imported vehicles. According to the Nigeria Customs Service and reporting around the announcement:
- Used (tokunbo) vehicles: NAC levy cut from 15% to 5% of CIF value
- New vehicles: NAC levy cut from 20% to 10% of CIF value
- Green Tax Surcharge introduced: 2% on vehicles with engines from 2,000cc to 3,999cc, and 4% on vehicles of 4,000cc and above
- Exempted from the green surcharge: vehicles under 2,000cc, mass transit buses, electric vehicles and locally manufactured vehicles
So a 10-percentage-point cut on used cars, offset by up to 4 points of green tax on large-engine vehicles. If you are importing a 1.8-litre Corolla, you get the full benefit of the cut and pay no green tax. If you are importing a 4.6-litre Land Cruiser, most of your saving disappears.
The full stack of charges on a tokunbo car
Customs does not charge one number. It charges a stack, and each layer sits on a different base, which is why people are constantly surprised at the port. The components that apply to a used passenger vehicle in 2026:
- Import duty — 20% of CIF. CIF is Cost, Insurance and Freight: what you paid for the car overseas, plus shipping and insurance to a Nigerian port. Customs uses its own valuation, not your purchase receipt.
- NAC levy — 5% of CIF (used vehicles, post-July 2026).
- Green Tax Surcharge — 0%, 2% or 4% depending on engine size, as above.
- ETLS levy — 0.5%, the ECOWAS Trade Liberalisation Scheme charge.
- FOB levy — 4%. The Nigeria Customs Service 4% Free-On-Board charge, which replaced the old 1% CISS fee and the 7% collection fee. It was suspended in February and later reinstated, and it remains a live point of argument between importers and Customs.
- VAT — 7.5%, applied on the combined value of the car plus the duties and levies above, not on the bare CIF.
Add them up and the statutory charge on a small-engine tokunbo car currently lands in the region of 38% to 42% of CIF — down from the roughly 42% to 49% range that applied before the July cut. On a big-engine SUV attracting the 4% green surcharge, you are back near the old level.
And then the charges Customs does not collect
This is where budgets break. On top of the statutory stack you still pay terminal handling charges, shipping line charges, port storage, the clearing agent’s fee, and demurrage if the vehicle overstays. These are quoted in Naira, they vary by terminal, and they are not affected by any fiscal policy announcement. Clearing agents commonly quote total out-the-port costs for a mainstream tokunbo saloon in the ₦2.5 million to ₦3.5 million range as a working estimate — but treat that as a ballpark, because it moves with the exchange rate and the specific vehicle.
Why the exchange rate matters more than the levy cut
Every duty above is a percentage of a dollar value converted to Naira at the Central Bank of Nigeria rate on the day your entry is assessed. That single number moves your bill more than any policy change.
The CBN rate has been firming through 2026 — it was around ₦1,332 to the dollar at the end of August and about ₦1,315 in early September, per published CBN rate data. That direction of travel helps importers. But a hundred-Naira swing on a $12,000 CIF vehicle changes your assessed value by more than a million Naira before a single percentage is applied. This is why two people clearing identical Camrys three weeks apart can pay meaningfully different amounts.
Practical implication: when a dealer quotes you a landed price, ask which duty rate date it was based on. A quote from six weeks ago is not a quote.
A worked example (illustrative only)
Take a used saloon with a Customs-assessed CIF of $10,000 and an engine under 2,000cc, at an assessed rate of roughly ₦1,320 to the dollar. That gives a CIF of about ₦13.2 million.
- Import duty at 20% — about ₦2.64m
- NAC levy at 5% — about ₦660,000
- ETLS at 0.5% — about ₦66,000
- FOB levy at 4% — about ₦528,000
- Green tax — nil (engine under 2,000cc)
- VAT at 7.5% on the combined base — roughly ₦1.28m
That is roughly ₦5.1 million to ₦5.2 million in statutory charges, before terminal, shipping-line, agent and storage costs. Under the pre-July NAC levy of 15%, the same car would have carried around ₦1.4 million more. That is a genuine saving — and also a reminder that “cheaper” is not the same as “cheap.”
These figures are an illustration of the method, not a quote. Your assessed CIF, HS code, engine size and clearing date all change the answer.
Has any of this reached showroom prices?
Partially, and slowly. Dealers pointed out at the time of the announcement that stock already sitting on the lot was cleared under the old regime, so those cars were never going to be repriced downward. The savings show up on units imported after 1 July. Two months in, the effect is visible mostly on small and mid-size saloons — exactly the vehicles that dodge the green surcharge.
The other reason prices have not fallen proportionally: clearing agents’ fees, terminal charges and inland transport have not gone down. A levy cut of 10 percentage points on CIF is a real number, but it is one line in a cost structure with many lines.
What this means for different buyers
If you are importing yourself
The economics improved for under-2,000cc vehicles specifically. Get a written duty estimate from a licensed clearing agent based on the current tariff and the current CBN rate before you buy abroad, and confirm the vehicle’s age against Nigeria’s used-vehicle age rules. Budget separately for terminal and agent charges — do not fold them into a single mental number.
If you are buying tokunbo locally
Ask when the car was cleared. A unit cleared after July should, in principle, have cost the importer less. That is leverage in a negotiation, though a dealer is under no obligation to pass it on.
If you are considering an EV
Electric vehicles are exempt from the green tax surcharge and have been treated favourably under the current import framework. That widens the gap in favour of EVs at the port, though charging access in Lagos, Abuja and Port Harcourt remains the real constraint on ownership rather than the import bill.
If you want a big SUV
You are the group that gained least. A 4,000cc-and-above vehicle picks up the full 4% green surcharge, which cancels most of the NAC levy reduction. If fuel economy was not already pushing you toward a smaller engine, the tariff now is.
Key takeaways
In short:
- The NAC levy on used vehicles fell from 15% to 5% on 1 July 2026 — a real, permanent reduction in landed cost.
- A green tax surcharge of 2% (2,000–3,999cc) or 4% (4,000cc+) started the same day, so the benefit is concentrated in small-engine cars.
- Under-2,000cc vehicles, EVs, mass transit buses and locally made vehicles pay no green surcharge.
- The 4% FOB levy still applies and remains contested.
- The CBN assessment rate moves your bill more than the levy cut does. Get a fresh estimate, not an old one.
- Terminal, agent and storage costs did not change — budget for them separately.
Common questions
Is the 20% import duty on cars still in force?
Yes. The July 2026 change was to the NAC levy and the introduction of the green surcharge. The base import duty on used passenger vehicles was not the subject of that cut.
Will tokunbo prices keep falling?
That depends far more on the Naira than on policy. If the CBN rate keeps firming, assessed values fall and landed costs fall with them. If it reverses, the levy cut will be swallowed quickly.
Can I calculate my duty myself?
You can estimate it using the stack above, but Customs assesses value using its own valuation database and HS code classification, which may not match what you paid. Use your own figure as a sanity check on an agent’s quote, not as the final word.
Vehicle prices, import duties and specifications change frequently in Nigeria. Always confirm current figures with your dealer, a licensed clearing agent, or the official Nigeria Customs Service tariff before you buy or ship anything.
Figures in this article reflect the 2026 Fiscal Policy Measures as announced by the Federal Government and reported in early July 2026, and CBN exchange rate data published in early September 2026.
