On 1 July 2026, Nigeria’s new vehicle import levy and Green Tax officially took effect, changing how customs charges are calculated for imported vehicles. While import levies have been reduced, larger-engine vehicles are now subject to a new environmental surcharge known as the Green Tax.
If you’re importing a new or Tokunbo vehicle into Nigeria, these changes could affect your total landed cost. Understanding the new levy and Green Tax can help you budget more accurately before your vehicle reaches the port.
In this guide, we’ll explain the new rates, which vehicles are exempt, how the Green Tax works, and what the changes mean for you as an importer in 2026.
New Vehicle Import Levy Rates in Nigeria
The latest policy reduces the vehicle import levy across both new and used vehicles
| Vehicle Category | Previous Levy | New Levy (2026) |
| Brand new vehicles | 20% | 10% |
| Used vehicles (Tokunbo) | 15% | 5% |
The reduction is significant for used vehicles, which account for the vast majority of vehicle imports into Nigeria.
These adjustments also build on earlier customs reforms. In April 2026, the government reduced the overall import duty on fully built passenger vehicles from 70% to 40%, making the July changes part of a broader effort to revise Nigeria’s automotive import policy.
What Is the Green Tax?
The Green Tax is a separate environmental surcharge introduced on certain imported vehicles based on engine capacity.
Rather than applying to every imported vehicle, it only affects larger engines, encouraging buyers to choose more fuel-efficient models.
Green Tax Rates
| Engine Capacity | Green Tax |
| Below 2,000cc | Exempt |
| 2,000cc – 3,999cc | 2% |
| 4,000cc and above | 4% |
According to the Nigeria Customs Service, the Green Tax is calculated separately from the standard customs duty and import levy during customs clearance using the HS Code declaration process.
Which Vehicles Are Exempt?
Not every imported vehicle will attract the Green Tax. The surcharge only applies to vehicles above the prescribed engine-capacity threshold.
The following vehicles are exempt:
- Vehicles with engines below 2,000cc
- Electric vehicles (EVs)
- Approved mass transit buses
- Qualifying locally manufactured vehicles
This means many compact passenger cars, hatchbacks, and smaller sedans imported into Nigeria will not incur the additional surcharge. However, engine size can vary between model years and trims, so it’s always worth confirming a vehicle’s specifications before importing.
How Engine Size Now Affects Import Costs
Before these reforms, buyers mainly considered factors such as auction price, shipping costs, customs duty, and port charges. Now, engine capacity has become another important cost factor.
Two vehicles purchased for the same amount can attract different customs charges if they fall into different Green Tax bands.
Popular Imported Vehicles and Their Green Tax Band
| Vehicle | Engine Size | Green Tax |
| Toyota Corolla | 1.8L | Exempt |
| Toyota Camry | 2.5L | 2% |
| Sienna | 3.5L | 2% |
| Honda Civic | 1.5 – 2.0L | Exempt |
| Toyota Land Cruiser | 4.5L Diesel/5.7L Petrol | 4% |
| Lexus RX 350 | 3.5L | 2% |
| Mercedes-Benz GLE 450 | 3.0L | 2% |
Most Honda Civic models are below 2,000cc. Performance variants, such as the Civic Type R, may fall into the applicable Green Tax band depending on engine specifications.
The examples above are based on engine sizes commonly found in imported models. Before buying a vehicle, always confirm its exact engine capacity using the auction listing, VIN, or manufacturer’s specifications, as different model years and trims may have different engine options.
How Customs Charges Are Calculated
The Green Tax is not a replacement for existing customs charges.
Depending on the vehicle and applicable regulations, import costs may include customs duty, vehicle import levy, green tax (where applicable), VAT, port and terminal charges, clearing and documentation fees.
Because these charges are calculated separately, the final amount payable varies depending on customs valuation and the vehicle’s specifications.
For Nigerians buying vehicles from U.S. auction platforms such as Copart, IAA, and Manheim, the Green Tax introduces another cost that should be considered before placing a bid.
When comparing vehicles, don’t focus only on purchase price, shipping cost, and repair estimates. Also check:
- Engine capacity
- Applicable Green Tax band
- Estimated customs charges
- Total landed cost
Doing this before bidding can help prevent unexpected expenses when the vehicle reaches Nigeria.
Why the Government Introduced the New Policy
The government says the reforms pursue two objectives. The first is to make vehicle imports more affordable by reducing import levies. The second is to encourage the importation of vehicles with smaller engines that generally consume less fuel and produce lower emissions.
The broader customs reform package also includes measures affecting agricultural equipment and selected food imports, forming part of a wider economic and environmental strategy.
How Dealers and Clearing Agents Have Responded
Motor dealers have welcomed the reduction in import levies but remain cautious about the overall financial impact.
Some industry representatives argue that while lower levies reduce costs, the Green Tax may offset part of those savings for buyers importing larger SUVs, luxury vehicles, and pickup trucks.
Clearing agents have also raised concerns about vehicles that were already in transit before July 1, 2026. Their main concern is whether shipments purchased under the previous tariff regime should be subjected to the new Green Tax after arriving in Nigeria.
Importers with vehicles shipped close to the implementation date should verify the applicable charges with their clearing agent before customs processing begins.
Nigeria’s Growing Vehicle Imports
The timing of these reforms is notable because Nigeria has already experienced strong growth in vehicle imports.
According to the Nigerian Ports Authority’s first-quarter operational review for 2026, vehicle traffic through Nigerian ports increased significantly compared with the same period in 2025.
This increase reflects growing demand for imported vehicles and ongoing efforts to improve port efficiency.
With more vehicles entering the country, even relatively small changes in customs charges can have a noticeable effect across the automotive market.
Ready to Pay for Your Imported Vehicle?
Once you’ve chosen a vehicle and worked out your estimated import costs, the next step is paying the supplier or auction platform.
International vehicle purchases aren’t the same as buying locally. You’ll need a reliable way to send money overseas before shipping and customs clearance can begin.
If you won a bid on auction platforms, you’re usually racing against the clock. Payment needs to clear before the vehicle is released for shipping, but Nigerian banks aren’t designed for time-sensitive international payments or the large transaction amounts that vehicle purchases often require.
Clea lets you pay Copart directly from Nigeria, pay IAA the same way, and pay your U.S car shipper when freight is due, making it easier to complete your purchase and keep your import process moving without unnecessary delays.
Looking for more tips on importing vehicles into Nigeria? You may also find these helpful:
- How to Import Cars from USA to Nigeria
- Copart vs IAA: The Ultimate Guide for Nigerian Car Importers
- 10 Common Mistakes Nigerian Car Importers Make
Frequently Asked Questions
Does the Green Tax replace import duty in Nigeria?
No. The Green Tax is an additional customs charge. It is calculated separately from import duty and the vehicle import levy, so eligible vehicles may be subject to all applicable charges during customs clearance.
Does the Green Tax apply to hybrid vehicles?
It depends on the vehicle. Hybrid vehicles are not automatically exempt simply because they combine a petrol engine with an electric motor. If the petrol engine exceeds the applicable engine-capacity threshold, the Green Tax may still apply. Always confirm the vehicle’s specifications before importing.
Will the Green Tax increase Tokunbo car prices?
It could, especially for larger-engine SUVs, crossovers, luxury vehicles, and minivans. Dealers may pass the additional import cost on to buyers, while smaller-engine vehicles that are exempt may see little or no price impact.
Does the green tax apply to used (Tokunbo) cars too?
Yes, if the engine size qualifies. The surcharge is based on engine capacity, not on whether the vehicle is new or used, so a Tokunbo SUV above 2,000cc pays the same surcharge band as a new one with the same engine size.
