Nigeria's Federal Government introduced a Green Tax Surcharge on imported vehicles effective 1 July 2026 under its 2026 Fiscal Policy Measures, imposing 2% to 4% levies based on engine capacity while simultaneously cutting standard import duties to 10% for new vehicles and 5% for used vehicles.
Nigeria introduced a green tax surcharge on imported vehicles under its 2026 Fiscal Policy Measures, effective 1 July 2026. The Green Tax Surcharge imposes a 2% to 4% levy on imported high-engine vehicles.
Collected by the Nigeria Customs Service, the surcharge aims to reduce carbon emissions, promote environmental sustainability, and encourage the importation of cleaner vehicles in line with global environmental standards.
The Green Tax Surcharge is based on engine capacity, with larger engines subject to higher rates. Vehicles with engines below 2,000cc are exempt; those with engines between 2,000cc and 3,999cc are subject to a 2% surcharge; and vehicles with engines of 4,000cc or more are subject to a 4% surcharge. Electric vehicles and mass transit buses are fully exempt, reflecting the government’s support for cleaner transportation.
At the same time, standard import duties fell sharply. New vehicles dropped from 20% to 10%. Used vehicles fell from 15% to 5%. For many smaller engines, the duty cut outweighs the absence of the green tax. For luxury or large-engine imports, the surcharge eats into the duty savings.
