The Federal Government has reduced import tariffs on vehicles, cutting duties on used vehicles from 15 per cent to five per cent and on brand-new vehicles from 20 per cent to 10 per cent, in a move aimed at supporting trade under the 2026 Fiscal Policy Measures.

The Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adeniyi, announced the revised tariff regime on Monday while defending the agency’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise.

Adeniyi explained that the new vehicle tariff rates form part of the Federal Government’s 2026 fiscal policy reforms, noting that while the measures are expected to stimulate trade and enhance economic activity, they could also reduce customs revenue from vehicle imports.

“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. For used vehicles, it has been reduced from 15 per cent to five per cent, and for brand-new vehicles, the tariffs have been reduced from 20 per cent to 10 per cent. So we believe that this is something that may also negatively affect revenue.”

During the session, a member of the committee, Alex Mascot, questioned whether the reduction would be sufficient to discourage importers from diverting cargo to neighbouring ports, particularly Cotonou.

He argued that high import charges had continued to push many importers away from Nigerian ports despite the tariff adjustments.

Responding, Adeniyi disclosed that implementation of the revised tariff policy commenced in May.

The Customs boss also revealed that the service generated N7.258 trillion in revenue between January and December 2025, surpassing its approved target by N1.153 trillion, representing an 18.89 per cent increase.

He attributed the strong performance to improved revenue collection despite several fiscal and economic challenges, including the suspension of excise duties on telecommunications services, the continued suspension of the proposed green tax, incentives for local production of healthcare products, and reduced import duties on medical supplies.

According to him, revenue was further affected by government incentives promoting compressed natural gas (CNG) and electric vehicles, as well as the growing volume of imports covered by duty exemptions, VAT waivers and provisions under the Common External Tariff.

Adeniyi disclosed that imports valued at N34.538 trillion benefited from revenue concessions in 2025, with petroleum products accounting for 56.40 per cent, military imports 40.52 per cent, and import duty exemption certificates alongside other items making up the remaining 3.08 per cent.

He added that disruptions in global trade caused by the Russia-Ukraine war also impacted import volumes, particularly wheat shipments into Nigeria.

Looking ahead, the Customs Service has been assigned a revenue target of N11.074 trillion for the 2026 fiscal year.

To meet the target, Adeniyi said the agency would accelerate the implementation of its Unified Customs Information System, known as B’Odogwu, strengthen post-clearance audits, expand the Authorised Economic Operator programme, deploy geospatial technology to curb smuggling, and deepen collaboration with stakeholders.

He added that the planned reintroduction of the green tax and other fiscal measures under the 2026 policy framework are expected to bolster revenue generation despite ongoing uncertainties in global trade linked to geopolitical tensions involving the United States, Israel and Iran.

For the 2026 fiscal year, the Customs Service proposed an expenditure budget of N1.235 trillion, covering personnel costs, overheads and capital projects, with funding expected from its four per cent Free-on-Board allocation, two per cent VAT share and provisions for ongoing capital projects.