Customs Cuts Import Duty on New, Used Vehicles, Targets ₦11.07tn Revenue in 2026
The Nigeria Customs Service (NCS) has announced a significant reduction in import duties on new and used vehicles as part of the Federal Government’s 2026 fiscal policy, while setting an ambitious revenue target of ₦11.074 trillion for the year.
Comptroller-General of Customs, Adewale Adeniyi, disclosed this while defending the agency’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise.
According to Adeniyi, the import duty on used vehicles has been reduced from 15 per cent to five per cent, while the tariff on brand-new vehicles has been lowered from 20 per cent to 10 per cent.
He said the revised tariff regime is designed to stimulate economic activities and ease the cost of vehicle imports, although it may reduce customs revenue from the sector.
“We believe these measures will improve overall revenue collection under the 2026 fiscal policy, even though the reduction in vehicle tariffs may have some negative impact on earnings,” Adeniyi said.
The Customs boss also noted that implementation of the new tariff structure began in May 2026.
During the budget defence, lawmakers questioned whether the lower tariffs would discourage importers from diverting cargo through neighbouring ports, particularly in Cotonou, Benin Republic, to avoid higher import costs.
Responding, Adeniyi said the service expects the new policy to improve compliance and encourage more importers to use Nigerian ports.
Chairman of the committee, Leke Abejide, welcomed the reduction, describing it as a major relief for Nigerians and commending the Federal Government for approving the policy.
Customs surpasses 2025 revenue target
Adeniyi revealed that the NCS generated ₦7.258 trillion in revenue between January and December 2025, exceeding its annual target by ₦1.153 trillion, representing an 18.89 per cent increase.
He, however, said several government policies affected revenue generation during the year, including the suspension of excise duties on telecommunications services, tax incentives for healthcare products, and the continued suspension of the proposed green tax.
Other factors that reduced collections included incentives for Compressed Natural Gas (CNG) and electric vehicles, as well as extensive import duty waivers granted under various government concession programmes.
According to him, imports valued at ₦34.538 trillion benefited from revenue waivers in 2025, with petroleum products accounting for over 56 per cent of the concessions.
₦11.07tn revenue target for 2026
Looking ahead, the Customs Service is projecting ₦11.074 trillion in revenue for the 2026 fiscal year.
Adeniyi said the target includes ₦5.542 trillion for the Federation Account, ₦1.491 trillion in non-federation revenue, ₦2.773 trillion from import VAT, and ₦1.266 trillion from Free-on-Board (FOB) collections.
He said the agency plans to achieve the target by accelerating the deployment of the Unified Customs Information System (UCIS), also known as B’Odogwu, expanding post-clearance audits, strengthening border surveillance with geospatial technology, improving trade facilitation, and intensifying stakeholder engagement.
The Customs Service is also proposing a ₦1.235 trillion expenditure budget for 2026, covering personnel costs, overheads, and capital projects, to support its operations and revenue-generation drive.
