The Federal Government has slashed import tariffs on vehicles, cutting duties on used cars from 15 per cent to five per cent, and on new vehicles from 20 per cent to 10 per cent.
Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, disclosed this while defending the agency’s 2026 budget before the House of Representatives Committee on Customs and Excise.
Adeniyi explained that the new tariffs, contained in the 2026 fiscal policy measures, form part of a broader excise regime expected to boost revenue overall — even as the vehicle duty cuts could dent collections in that specific category.
“We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection,” he said. “Conversely, tariffs on vehicles and levies on vehicles have been reduced significantly… So we believe that this is something that may also negatively affect revenue.”
Abia lawmaker Alex Mascot pressed Adeniyi on whether the cut was steep enough to stop importers from routing goods through Cotonou and other neighbouring ports to dodge Nigerian charges. Adeniyi responded that the policy took effect in May.
Committee chairman Leke Abejide welcomed the move as a win for Nigerians, urging the public to commend President Bola Tinubu for the reduction.
On broader performance, Adeniyi reported that Customs generated N7.258 trillion in 2025 — N1.153 trillion (18.89 per cent) above target — despite headwinds including suspended telecom excise duty, a stalled green tax, incentives for local healthcare production, and the CNG/EV initiative, all of which cut into potential revenue. He added that N34.538 trillion in imports qualified for concessions last year, dominated by petroleum products (56.40%) and military imports (40.52%).
For 2026, Customs is targeting N11.074 trillion in revenue, broken down into N5.542 trillion for the federation, N1.491 trillion in non-federation revenue, N2.773 trillion from import VAT, and N1.266 trillion from FOB collections. Strategies to hit the target include full rollout of the B’Odogwu unified customs system, tighter post-clearance audits, expanded trade facilitation programmes, and stepped-up anti-smuggling patrols.
Adeniyi’s proposed 2026 expenditure budget stands at N1.235 trillion — covering N421.70 billion in personnel costs, N307.77 billion in overheads, and N565.93 billion for capital projects — funded mainly through FOB and VAT allocations.
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