For buyers currently seeking to purchase a car in Nigeria, whether brand new, tokunbo, or even an electric vehicle, the new Green Tax could affect how much you pay.
The new policy, which took effect on July 1 under the 2026 Fiscal Policy Measures, introduces an environmental surcharge on some imported cars while reducing import levies on others to discourage high-emission vehicles that contribute to air pollution and to encourage cleaner transportation in the country, in line with global standards.
The Green Tax is rooted in policy discussions that prompted its 2026 rollout, and one major foundation was the Nigeria Energy Transition Plan, launched in 2022, which sets a roadmap for reducing emissions across sectors, including transportation, and increasing the adoption of cleaner vehicles as part of the country’s journey to net-zero emissions by 2060.
This policy also draws from the Climate Change Act 2021, which established the legal framework for climate action in Nigeria, and from the country’s commitments under the Paris Agreement, an international deal aimed at tackling climate change, which entered into force in 2017 to reduce greenhouse gas emissions.
Read also: Nigeria halves Customs duties on vehicle imports ahead of new green tax surcharge
