New Customs duty rates for 2026 have significantly increased the cost of importing Tokunbo (used) vehicles into Nigeria. Importers now face total statutory charges of 42% to 45% of a vehicle’s CIF value, comprising 20% import duty, 15% NAC levy (for used cars), and 7.5% VAT. A new 4% Free-On-Board levy replaces the former 1% CISS charge, adding further costs. The changes align with the ECOWAS Common External Tariff 2022-2026 framework, aiming to encourage local vehicle assembly, reduce used car dependency, and boost government revenue.
Key Points:
Import costs have risen sharply; a N10 million vehicle now incurs over N4 million in customs payments alone.
The 4% FOB levy quadruples previous charges, adding N800,000 on a N20 million vehicle compared to N200,000 before.
Higher costs are passed to consumers, making personal mobility less affordable for millions of Nigerians.
The policy aims to boost local manufacturing but may face challenges in meeting demand for affordable vehicles.
Importers and dealers face squeezed margins as buyers hesitate or seek alternatives.
Prospective buyers must adjust expectations and budgets, while the government monitors whether local assembly can fill the gap left by expensive Tokunbo imports.
Sources: Nigerian Tribune, Nigeria Customs Service, Konnect NG