Dealers Release Fresh Prices for Imported Cars as FG Slashes Tariffs, Experts Fault Policy
- The Nigerian government lowers car import tariffs to 40%, but experts question its real impact on prices
- Analysts warn that currency fluctuations and extra charges may neutralise the benefits of reduced tariffs
- Local auto industry faces challenges as new import duties and taxes complicate the market for dealers and consumers
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian government recently announced a decision to lower car import tariffs to 40%.
The move comes under its fiscal policy measures, which promised a breakthrough, but experts say the reality is different for Nigerians.
Source: Getty Images
Analysts fault FG’s import tariff cut on cars
They say that while the government’s tariff slash suggests a reduction, car prices may not see a meaningful drop as exchange rate volatility, port charges, and dealers' rates keep costs high.
The shift has also affected the domestic auto industry, forcing a tense re-evaluation of the gains for importers against potential losses for local dealers.
Analysts say the combination of new import levies and the looming green surcharge effectively paralyses the tariff reduction, offering only a marginal reprieve.
According to a BusinessDay report, Muda Yusuf, the Chief Executive Officer of Centre for the Promotion of Private Enterprises (CPPE), said that the tariff adjustment is not drastic and far-reaching enough.
He noted that before now, the import duty dropped from 70% in 2023 to 45%, making the recent 40% less effective.
The CPPE boss said that the introduction of a two per cent green tax on vehicles with engine capacity of 2,000cc and above could drive rates higher.
Dealers reveal new prices for imported cars
Reports by Carlots revealed that the true cost of importing a car into Nigeria is more expensive than paying just the customs duty.
The dealer said the costs include import duty and levy for used vehicles, VAT, ECOWAS Trade Levy, Port Development Levy, Terminal Handling and Shipping, and Clearing Agent Fees and Misc.
Over the years, car prices have continued to skyrocket due to the FX rate and other fees in the Customs import duty.
Market survey shows that the price of cars in Nigeria rose from N1.9 million in 2023 to N10 million for popular used models in 2026.
Also, it increased from N9 million to N47 million for similar models by early 2026.
This ranges from different brands and models, ranging from sedans, compact SUVs, to pickup trucks and others.
Foreign used cars, such as the Toyota Corolla, prices for older models rose from N4.5 million to N8 million in early 2023 to over N9.5 million and N15 million by 2026.
Experts make case for local industries
Brand new cars, such as new sedans, start at N18 million to N35 million in early 2026, while SUVs range from N25 million to over N125 million.
The CPPE boss disclosed that the new policy does not threaten local dealers, saying that a wide gap still exists between fully built imports and locally assembled ones.
Yusuf noted that the Completely Knocked Down (CKD) kits remain at zero per cent duty, while Semi Knocked Down (SKD) kits attract 10%, which provides incentives for local assemblers.
Source: Getty Images
He said further support could come from reducing SKD duties to zero, as many assembly plants rely more on SKD than CKD due to technical and operations issues.
FG releases import prohibition list
Legit.ng earlier reported that the Nigerian government has updated its list of items not allowed to be imported into the country, with cement, soaps, fertiliser and 14 other goods and products on the list.
The development was announced in a circular issued by the Ministry of Finance and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following presidential approval of the 2026 fiscal policy measures.
The document, which was quoted in Punch, stated that the revised measures became effective from April 1, 2026, under the ECOWAS Common External Tariff guidelines.
Source: Legit.ng
