Nigeria Cuts Vehicle Levies to 5%, Scraps EV and Farm Equipment Duties

3 articles · Updated · msmeafricaonline.com · Jun 30

Nigeria’s new 2026 fiscal tariff measures take effect July 1, cutting levies on new vehicles to 10% and used vehicles to 5%, while lowering passenger vehicle duty to 40%.
The overhaul targets living costs and business expenses by also reducing food import duties, including rice to 47.5%, broken rice to 30%, crude palm oil to 28.75% and raw cane sugar to 55%-57.5%.
Electric vehicles, mass-transit buses, agricultural machinery and manufacturing equipment now face zero import duty, a move aimed at cheaper transport, lower production costs and faster investment.
Nigeria Customs said the review covers 127 tariff lines and starts alongside a new Green Tax Surcharge, while waste PET was added to the export prohibition list to support local recycling.
The government is betting the tariff reset will ease inflation pressure, improve supply chains and support local production, though the impact will depend on whether import savings reach households and businesses.

Sources

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Nigeria’s 2026 Duty Cuts: Will Tariff Reductions Make Vehicles and Essential Goods Affordable?

Overview

In April 2026, the Nigerian Federal Government launched a major fiscal policy overhaul, introducing substantial tariff reductions on cars, steel, and other key goods. This move aims to stimulate economic activity, counter imported inflation, and sustain momentum across various sectors. By lowering import duties, the government seeks to make essential goods more affordable, support local production, and protect households and businesses from global economic pressures. These targeted measures reflect a proactive strategy to boost the economy and create a more favorable environment for both consumers and industries in Nigeria.

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