By Ayomide Otitoju
The Federal Government has reduced import levies on vehicles and several essential goods while introducing a new Green Tax as part of the 2026 Fiscal Policy Measures aimed at easing the cost of living, promoting environmental sustainability and supporting economic growth.
The Nigeria Customs Service (NCS) announced on Wednesday that implementation of the Green Tax Surcharge commenced on July 1, 2026, following the approval of the fiscal policy measures by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Under the revised tariff regime, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been cut from 15 per cent to five per cent. Import duty on passenger vehicles has also been lowered from 70 per cent to 40 per cent.
The government also granted full import duty exemptions for mass transit buses and electric vehicles (EVs), a move expected to reduce transportation costs and encourage the adoption of cleaner energy.
The policy is expected to benefit transport operators, who rely heavily on imported buses, trucks, minibuses and light commercial vehicles for passenger and cargo movement across the country.
As part of the broader tariff review, import duties on key food items were also reduced. Duty on rice was cut from 70 per cent to 47.5 per cent, while broken rice now attracts a 30 per cent duty. The tariff on crude palm oil was reduced from 35 per cent to 28.75 per cent, while duties on raw cane sugar were lowered to between 55 per cent and 57.5 per cent.
The government said the reductions are intended to lower the cost of food production and improve affordability for consumers.
In the agricultural and manufacturing sectors, import duties on machinery have been completely removed to encourage investment and boost productivity.
The revised policy also places Waste PET on the export prohibition list to support the growth of Nigeria’s domestic recycling industry.
The tariff adjustments affect 127 tariff lines and represent one of the most extensive reforms of Nigeria’s import duty regime in recent years, with the government seeking to reduce inflationary pressures, stimulate industrial activity and improve household welfare.
