Full Breakdown of Duties, Taxes and Levies Nigerians Pay to Import Cars in 2026
- Importing a car into Nigeria attracts several taxes and charges, including 20% import duty, 5% NAC levy, 7.5% VAT and other applicable fees.
- A new Green Tax of 0%, 2% or 4% also applies depending on the vehicle’s engine size, while other charges include surcharge and CISS/FOB levies
- These fees can significantly increase the final cost of an imported vehicle, so buyers should understand the applicable charges
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Importing a car into Nigeria involves taxes, charges and other fees that can greatly raise the total price of the vehicle. These fees are based on parts of the vehicles value when it is imported.
That is why people who bring vehicles into Nigeria need to know what each fee covers before trying to figure out the total cost.
Source: UGC
According to the system that follows the ECOWAS Common External Tariff and was changed by the 2026 Fiscal Policy Measures (which started on July 1 2026) the fees are as follows:
1. Import duty – 20%
The import duty on cars is 20%. This is based on the cost, insurance and freight value of the vehicle. The cost, insurance and freight value is the price of the vehicle, the cost of its insurance and the cost of shipping it to Nigeria. The 20% import duty is one of the parts of the total cost of bringing a vehicle into Nigeria.
2. NAC levy – 5%
The National Automotive Council levy is currently 5% of the cost, insurance and freight value. For cars the rate dropped from 15% to 5% starting on July 1 2026. For cars the rate dropped from 20% to 10%. Importers need to know if the car is new or used when figuring out the NAC levy.
3. Green tax – 0%, 2% or 4%
The Green Tax is a fee that started in 2026. It depends on the size of the vehicles engine. Cars with engines below 2,000cc do not pay any Green Tax. Cars with engines between 2,000cc and 3,999cc pay 2%. Cars with engines of 4,000cc or more pay 4%. Some types are not charged. These include cars, buses for public transport and cars made in Nigeria.
4. Surcharge – 7%
A 7% surcharge applies to imported cars. Unlike fees this surcharge is based only on the amount of import duty not directly on the cost, insurance and freight value. This is important because applying the 7% surcharge to the cost, insurance and freight value would give a number and could lead to an incorrect estimate of the total cost.
5. ETLS levy – 0.5%
The ECOWAS Trade Liberalisation Scheme levy is 0.5% of the cost, insurance and freight value. This fee is part of the ECOWAS Trade Liberalisation Scheme, which helps trade between member countries. Importers need to include the 0.5% charge in their cost when it applies.
6. CISS/FOB levy – 1% CISS or 4% FOB
Another fee to consider is the Comprehensive Import Supervision Scheme levy, which can be 1% CISS or 4% FOB. The charge depends on whether it's based on the Free on Board value or the cost, insurance and freight value.
This charge is based on the Free on Board value of the cost, insurance and freight value. However, the way this charge is applied has been inconsistent since 2025. Importers should check with their clearing agent to make sure they know the charge.
7. VAT – 7.5%
The Value Added Tax in Nigeria is 7.5%. Importantly, this tax is not just on the cost, insurance and freight value. It is on the cost, insurance and freight value plus all other fees added together.
That means the VAT is calculated after adding the import duty, levies and other charges. As a result, the final VAT amount can be higher than expected if it is only calculated on the cost, insurance and freight value.
Source: UGC
What this means for vehicle importers
The many fees explain why the price printed on a car does not match the cost, in Nigeria. Import duty, levies, Green Tax, surcharge and VAT can all add a lot to what the importer ends up paying.
Since some fees depend on the car type, engine size or current rules importers should check the rates and fees before finishing their cost estimates.
Customs confirms FG's import duty slash
Earlier, Legit.ng reported that the federal government's recent decision to reduce import duties on both used and brand-new vehicles is a move set to ease the financial burden on Nigerians grappling with skyrocketing car prices.
As millions of struggling citizens await the tangible impact of this policy, questions loom over whether it will effectively deter importers from diverting cargo to neighbouring ports amid ongoing fiscal challenges.
Source: Legit.ng
