Minister of Finance, Wale Edun and Customs CG, Wale Adeniyi in a handshake
Whereas the Federal Government has reduced the tariff on imported fully-built passenger vehicles, four-wheel drive cars, and station wagons from 70 per cent to 40 per cent following the newly approved 2026 Fiscal Policy Measures, indications are rife that many traders still prefer neighbouring ports due to their seamlessness and very simple hassle-free clearing processes.
Business Hilights.ng gathered that the slash, which took effect from April 1, 2026, is contained in a document signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and forms part of broader tariff amendments introduced under the ECOWAS Common External Tariff (CET) 2022–2027 framework.
Details show that prior to the new development, importers usually pay 35 per cent duty and 35 per cent levy on all imported vehicles, bringing it to a combined tariff burden of 70 per cent.
However, the new 2026 measures by the Federal Government have now brought the total effective tariff on the same category of vehicles down to 40 per cent, representing a 30 percentage point reduction.
The 2026 Fiscal Policy Measures also introduce an Import Adjustment Tax (IAT) on 192 tariff lines, an import prohibition list covering 17 items from non-ECOWAS countries, and a national list of 127 items with reduced import duties designed to support key sectors of the economy.
The government granted a 90-day grace period for importers with existing Form ‘M’ and irrevocable trade agreements executed before April 1, 2026, to clear goods under the old duty rates.
It stressed that all new import transactions from that date were subject to the revised tariff regime.
Edun noted that Import Adjustment Taxes, with the exception of products on the African Continental Free Trade Area (AfCFTA) three per cent list, will be gradually reduced on an annual basis from January 2027 until full elimination by 2036, in line with Nigeria’s commitments to ECOWAS and AfCFTA.
