FG slashes car import tariffs to 40% in new 2026 fiscal policy

The federal government has cut import tariffs on fully-built passenger vehicles, four-wheel drive cars, and station wagons from 70 percent to 40 percent, as part of the new 2026 Fiscal Policy Measures (FPM).

This was stated in a document issued by Wale Edun, minister of finance and coordinating minister of the economy, and forms part of broader tariff amendments introduced under the ECOWAS Common External Tariff (CET) 2022–2027 framework.

According to reports, importers usually pay 35 percent duty and 35 percent levy on all imported vehicles, bringing it to a combined tariff burden of 70 percent.

However, the new measure introduced by the federal government has now brought the total effective tariff on the same category of vehicles down to 40 percent, representing a 30 percent reduction, to curb high vehicle ownership costs and stimulate economic growth.

Read also: High costs push Nigeria’s car imports to $1.03m in 2025

The 2026 Fiscal Policy Measures also introduced 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 percent 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.