FG Reduces Car Import Tariff from 70% to 40%: What it Means for Vehicle Prices in Nigeria
- The Federal Government has reduced the import tariff on fully built vehicles from 70 per cent to 40 per cent
- Lower tariffs are expected to reduce import costs and potentially lower car prices for consumers
- The policy aligns with broader efforts to support economic growth and improve living standards
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has reduced the import tariff on fully built passenger vehicles from 70 per cent to 40 per cent under its 2026 fiscal policy measures, in a move aimed at improving access to cars in Nigeria.
The policy, announced as part of the newly approved fiscal framework, applies to fully assembled vehicles, including four-wheel drives and station wagons.
This announcement is contained in a statement by the National Orientation Agency (NOA), posted on the agency’s website on Friday, April 17, 2026.
Source: Getty Images
Lower duties expected to ease vehicle prices
With the revised tariff, importers will now pay significantly lower duties when bringing vehicles into the country.
Previously, the higher tariff contributed to increased vehicle prices, as the additional costs were often transferred to buyers.
According to the statement, the new rate is expected to reduce importation costs and may lead to more affordable prices for consumers.
“With the reduction to 40 per cent, the cost of importing vehicles is expected to decrease, which could translate into more affordable prices for buyers. This development is likely to improve access to vehicles for individuals, families, and businesses across the country,” the statement read.
Potential impact on transport and businesses
Analysts say the adjustment could improve access to vehicles for individuals and businesses, particularly in a market where affordability has remained a major concern.
Lower vehicle costs may also help ease transportation challenges, enhance mobility, and reduce logistics expenses for companies that depend on efficient movement of goods and services.
Broader economic implications
The tariff reduction is also expected to support economic activity by improving transport efficiency across key sectors.
According to government projections, the measure aligns with ongoing efforts to improve living standards and stimulate growth through policies that lower the cost of essential goods and services.
“Overall, the tariff reduction reflects the government’s commitment to improving the standard of living for Nigerians while supporting economic growth through more efficient transportation systems,” the statement added.
Source: UGC
FG launches leasing scheme for okada, tricycle riders
Legit.ng earlier reported that the federal government has introduced a structured leasing model for motorcycle and tricycle operators through a partnership involving the Equipment Leasing Registration Authority (ELRA), Century Information Systems Ltd (CIS), and the National Commercial Tricycle and Motorcycle Owners and Riders Association of Nigeria (NATOMORAS).
Riders will benefit from flexible repayment plans and easier access to vehicle ownership. Technology, such as tracking systems, will be used to improve safety and asset monitoring.
According to a statement by the ELRA, the initiative is designed to address exploitative hire purchase arrangements and improve access to financing for operators nationwide.
Source: Legit.ng
