The Federal Government of Nigeria has reduced the import tariff on fully-built passenger vehicles, four-wheel drive cars, and station wagons from 70% to 40%. This change is part of the 2026 Fiscal Policy Measures and takes effect from April 1, 2026.

Before the new policy, vehicles in this category typically attracted a combined duty and levy of 35% + 35% = 70%. With the new rate, the total effective tariff for the same vehicles is now 40%—a reduction of 30 percentage points.

What it means for importers (example)o show the impact, the report gives a clear example:

• If a vehicle is valued at ₦10 million
• Importers previously paid ₦7 million in duties and levies (70%)
• Under the new rate, they pay ₦4 million (40%)

That means a saving of ₦3 million per vehicle.

Other measures included in the 2026 policy

The 2026 Fiscal Policy Measures also include:

• An Import Adjustment Tax (IAT) applied to 192 tariff lines
• A prohibition list covering 17 items imported from non-ECOWAS countries
• A national list of 127 items with reduced import duties to support key sectors

Grace period for existing import deals

Importers who already have existing Form “M” and irrevocable trade agreements signed before April 1, 2026, are allowed a 90-day grace period to clear goods using the old duty rates.

All new imports after that date will follow the revised tariff rules.

Gradual reduction of IAT starting in 2027

The government also stated that Import Adjustment Taxes will be reduced annually starting January 2027, to fully eliminate them by 2036, in line with Nigeria’s commitments to ECOWAS and AfCFTA.

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