If you’re planning to get a car this year, the biggest question is no longer just “which model?” But “What will it cost me at the port?” Rules on Car import duty in Nigeria 2026 has changed several times, and the headlines have been confusing: some reports say tariffs have been cut, others say Tokunbo cars have become more expensive. Both may be partially true. This guide breaks down what is reported, how charges accrue and what to check before paying the clearing agent.
What has changed in 2026?
According to a BusinessDay report dated 29 June 2026, the Nigeria Customs Service (NCS) has announced that the Ministry of Finance has ordered a reduction in vehicle duty. The reported changes are:
- New Vehicles: The duty has been reduced from 20% to 10%.
- Used (Tokunbo) Vehicles: The duty has been reduced from 15% to 5%.
- Earlier, in April 2026: The overall duty on fully manufactured passenger vehicles has reportedly come down from 70% to 40%.
The Comptroller-General of Customs, Adewale Adeniyi, reportedly told the House Committee on Customs and Excise that the revised system was to be implemented in May 2026 under the 2026 fiscal policy, and acknowledged that the cuts could reduce vehicle-related revenue. Lawmakers welcomed the move, although one member noted that high overall clearing costs still push some importers to Cotonou, Benin Republic.
New green tax surcharge
Along with the cuts comes a new engine-size-based green tax surcharge, which is reported to come into force on 1 July 2026. According to the NCS, this is intended to discourage high emission imports and encourage cleaner vehicles:
- Below 2,000cc: exemption
- 2,000cc to 3,999cc: 2% levy.
- 4,000cc and above: 4% levy.
- Free Category: Electric vehicles, authorized public transport buses and locally manufactured vehicles.
In practice, a 2.5-liter Toyota Camry will fall in the 2% band, while a large V8 SUV such as a Land Cruiser will be in the 4% band, according to examples cited in the trade report. Dealers said the surcharge could wipe out some of the savings on large SUVs, pickups and luxury cars, with small sedans and crossovers under 2.0 liters benefiting the most.
Note that hybrids are not automatically exempt: if the petrol engine is above 2,000cc, the surcharge may still apply. Engine size varies by model year and trim, so confirm from the VIN or manufacturer’s specifications rather than guessing.
How Charges Accumulate in a Tokunbo Vehicle
Duty is only one line on the bill. Trade reports describe a used import charge as a combination of the following, although the exact rates and values they apply vary between sources:
- Customs Import duties CIF value (cost, insurance and freight).
- Surcharge on duty (reported as 7% of duty amount).
- National Automotive Council (NAC) tariffsA clearing guide reported 15% for used cars and 20% for new ones
- ECOWAS Trade Liberalization Scheme Tariffs 0.5%, for vehicles within West Africa.
- VAT At 7.5%.
- do green If the engine is 2,000cc or larger.
- Other Expenses: A reported 4% FOB duty on imports, plus shipping, terminal handling, agent fees and port charges.
The One Tribune report, published in March 2026 ahead of the duty cut announcement, put the total statutory charge at around 42% to 45% of the CIF value and warned of higher clearing costs after the doubling of duty fees from 1 January 2026. So you’ll find articles with seemingly opposite conclusions that were written on different principles. The honest takeaway is that the headline duty rate has gone down, but the total landed cost depends on the whole stack, not one number.
What this means for car prices
No one can promise a lower sticker price at your local dealer. Nigerian car prices also respond to exchange rates, shipping rates and demand, and dealers often clear stock below the old rates. Here’s a smarter way to think about it:
- Small and medium sized cars (below 2.0L): Probably to see real savings, since green tax is not applicable.
- Mid-size SUVs and sedans (2.0L to 3.9L): The savings are partially offset by the 2% surcharge.
- Large SUVs and Pickups (4.0L and above): Expect the smallest benefit.
- Electric Vehicles: Exemption from green tax, for which the case is strong Cost of owning an EV in Nigeria In the long term, though, charging access remains a practical hurdle.
Buying tips before you import or pay a dealer
- Ask for a written breakdown Compare duties, customs, VAT, green tax and agent fees and at least two clearing agents.
- Check engine power From the VIN, so you know which green tax band applies.
- Please inquire about shipping dates. Clearing agents are concerned about vehicles in transit before 1 July 2026 and your agent should confirm how they are treated.
- Check the vehicle Customs vehicle verification and through your insurer before paying the final balance.
- Budget for the unexpected: Delinquencies, delays and assessment disputes can add to the final bill.
- Financing: If you plan to use a car loan, ask if the lender will finance clearing costs or just the purchase price.
Should you buy a Tokunbo car now or a new one?
As 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 fairly used car at the port is smaller in percentage terms than before. For buyers who want warranty and easy access to spare parts, a new car from an authorized dealer may be worth the price with a Tokunbo unit. Locally assembled vehicles are also exempt from green tax, which is worth considering when you’re comparing options.
Key takeaways and FAQs
Key take: The reported duty is less (20% to 10% new, 15% to 5% used) less of a part of the bill, but green tax, NAC duty, VAT and clearing fees on engines 2,000cc and above still determine your final landed cost.
Is green tax levied on Tokunbo vehicles?
yes It is based on engine size, not whether the car is new or used, and applies to engines of 2,000cc or more.
What spares electric cars?
According to the Nigeria Customs Service, electric vehicles are exempted from green tax surcharge.
Car prices in Nigeria will decrease?
Not automatically. Exchange rates, shipping costs and dealer stock levels all play a role, so compare quotes without expecting identical drops.
Disclaimer: Car prices, import duties and specifications in Nigeria change frequently and current rate reports vary. Always confirm current figures with the dealer, licensed clearing agent or Nigeria Customs Service before purchasing.