By Seun Ibiyemi
The Federal Government has reduced the import levy on new and used vehicles under the 2026 Fiscal Policy Measures, as part of efforts to lower the cost of vehicle importation, stimulate trade and support economic growth.
Under the revised tariff regime, the levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been cut from 15 per cent to five per cent.
The new rates have taken immediate effect and form part of a broader review of Nigeria’s import tariff structure aimed at easing the financial burden on importers and making vehicles more affordable for consumers.
The reduction is among several fiscal reforms introduced by the Federal Government in its 2026 policy framework, which also revises tariffs on a range of imported goods and introduces new tax measures.
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As part of the reforms, the government has commenced the implementation of a Green Tax surcharge on specified high-engine vehicles from July 1, alongside other customs and excise policy changes intended to promote environmental sustainability and improve revenue generation.
Meanwhile, the World Bank has approved a fresh $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme.
The approval was announced on Wednesday as the World Bank unveiled its new Country Partnership Framework for Nigeria covering the period from 2026 to 2032.
According to the global financial institution, the six-year framework is designed to support Nigeria’s efforts to create more and better jobs by unlocking private sector-led economic growth and encouraging investment.
“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the bank said in a statement.
The approval comes amid growing concerns over Nigeria’s rising debt profile and renewed calls by stakeholders for the Federal Government to reduce its dependence on external borrowing.
Analysts, however, say the vehicle import levy reduction could provide relief to importers and consumers, while the World Bank financing is expected to support reforms aimed at improving the business environment and boosting job creation.
The latest fiscal measures underscore the Federal Government’s efforts to balance revenue generation with policies intended to encourage trade, investment and broader economic expansion.
