NIGERIA INTRODUCES 2–4% LEVY ON HIGH-CAPACITY CAR IMPORTS
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By: Balogun Ibrahim
Nigeria is intensifying efforts to promote cleaner transportation and reform its fiscal system by introducing a new tax on imported vehicles with large engine capacities. This move is part of a broader strategy to balance revenue generation with the country’s energy transition goals.
Under the new policy, Nigeria’s car import market will become more restrictive, particularly for high-engine vehicles. A surcharge of 2% to 4% will apply to imported cars with engines above 2,000cc starting July 1, 2026. Vehicles with engine sizes between 2,000cc and 3,999cc will attract a 2% levy, while those with 4,000cc and above will face up to 4%. Meanwhile, smaller cars, mass transit buses, electric vehicles, and locally assembled vehicles are exempt.
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This initiative forms part of a wider set of fiscal reforms, including reduced import tariffs and alignment with the ECOWAS Common External Tariff framework. It also reflects Nigeria’s attempt to address rising transport emissions and its dependence on imported used vehicles, while encouraging cleaner mobility options such as electric vehicles and local manufacturing.
Overall, the policy combines environmental and economic objectives—discouraging high-emission vehicle imports, supporting domestic industry, and easing cost pressures—while positioning Nigeria’s automotive sector for a gradual shift toward sustainability.
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