FG cuts tariff on imported fully-built vehicles, four-wheel drive, station wagons
By Uzor Odigbo
The Federal Government has cut the import tariff on fully-built passenger vehicles, four-wheel drive cars, and station wagons from 70 per cent to 40 per cent, delivering a significant reduction in the cost burden on vehicle importers under its newly approved 2026 Fiscal Policy Measures.
The slash, which took effect from April 1, 2026, is contained in a document issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and forms part of broader tariff amendments introduced under the ECOWAS Common External Tariff (CET) 2022–2027 framework.
Before now, importers usually pay 35% duty and 35% levy on all imported vehicles, bringing it to a combined tariff burden of 70 per cent.
However, the new 2026 measures by the Federal Government has now brought the total effective tariff on the same category of vehicles down to 40 per cent, representing a 30 percentage point reduction.
In practical terms, an importer bringing in a vehicle valued at N10 million would previously have paid N7 million in duties and levies. Under the new rate, that obligation drops to N4 million, a saving of N3 million per unit.
The 2026 Fiscal Policy Measures also introduce an Import Adjustment Tax (IAT) on 192 tariff lines, an import prohibition list covering 17 items from non-ECOWAS countries, and a national list of 127 items with reduced import duties designed to support key sectors of the economy.
The government granted a 90-day grace period for importers with existing Form ‘M’ and irrevocable trade agreements executed before April 1, 2026, to clear goods under the old duty rates. All new import transactions from that date are subject to the revised tariff regime.
Edun noted that Import Adjustment Taxes, with the exception of products on the African Continental Free Trade Area (AfCFTA) three per cent list, will be gradually reduced on an annual basis from January 2027 until full elimination by 2036, in line with Nigeria’s commitments to ECOWAS and AfCFTA
