The Federal Government has reduced import levies on new and used vehicles in a move expected to lower the cost of bringing vehicles into Nigeria.
ABUJA, NIGERIA — The Federal Government of Nigeria has announced a reduction in import levies on vehicles, cutting the levy on new vehicles from 20 per cent to 10 per cent and reducing the levy on used vehicles from 15 per cent to 5 per cent. The new rates took effect immediately, according to information released by government authorities.
The decision forms part of efforts to reduce the cost of vehicle importation and make automobiles more affordable for Nigerians. Industry stakeholders have repeatedly raised concerns about high import charges, saying they contribute to rising vehicle prices in the country.
According to the government, the revised levy structure aims to ease the financial burden on importers and encourage more activity in the automotive sector. The authorities also expect the measure to improve access to vehicles for businesses and private individuals by lowering overall import costs.
Nigeria relies heavily on imported vehicles, with a significant percentage of cars sold in the country coming through seaports and land borders. Import duties and levies have long been a major factor influencing vehicle prices, often pushing the cost of both new and used vehicles beyond the reach of many Nigerians.
The development means vehicle importers could begin adjusting their prices to reflect the lower levy rates in the coming weeks. It may also boost activities in the automobile market and increase the number of imported vehicles entering the country, while consumers and dealers monitor how quickly the reductions translate into lower prices.
