By Oluyinka Onigbinde
Uncertainty continues to trail the Federal Government’s decision to reduce Customs duty on imported vehicles, following the introduction of the Green Tax surcharge. This is even as vehicle dealers say it is too early to determine whether the policy will ultimately benefit importers.
The Association of Motor Dealers of Nigeria (AMDON) has expressed cautious optimism over the 10 per cent reduction in Customs duty on imported vehicles, noting that the newly-introduced Green Tax, which took effect on July 1, 2026, could potentially offset the gains expected from the duty cut.
In a chat with our correspondent the National President of AMDON, Mr. Ajibola Adedoyin, said members of the association were still studying the financial implications of the Green Tax before drawing conclusions on the government’s latest fiscal measures.
Under the new policy, imported vehicles with engine capacities between 2,000cc and 3,999cc attract a two per cent Green Tax surcharge, while vehicles with engines of 4,000cc and above, including luxury vehicles and large Sport Utility Vehicles (SUVs), are subject to a four per cent surcharge.
Adedoyin said although the reduction in Customs duty was a welcome development, the introduction of the Green Tax at almost the same time had created uncertainty over the actual cost of clearing vehicles at the ports.
“We are happy that the Federal Government approved the reduction in Customs duty on imported vehicles, both new and fairly used.
“However, it is difficult for us to celebrate because the Green Tax has just been introduced and we are yet to know what the final calculations will look like when both policies are applied together.
“It appears as though the government is giving with one hand and taking back with the other. Until we see the actual figures in naira and kobo, it is impossible to determine whether importers are truly benefiting from the duty reduction.”
He explained that many vehicle dealers had adopted a wait-and-see approach because the Nigeria Customs Service had only just begun implementing the Green Tax in its valuation process.
According to him, the major concern is whether the savings from the 10 per cent Customs duty reduction would be sufficient to outweigh the additional charges introduced through the Green Tax.
“The Green Tax commenced on Wednesday, but many of us are still trying to understand the arithmetic. We don’t yet know whether the two or four per cent surcharge will erode the benefit of the 10 per cent duty reduction, particularly on fairly used vehicles, which account for the bulk of our imports.
“We commend the government for reducing Customs duty, but we will reserve our final assessment until we can determine exactly what importers will be paying after the Green Tax has been applied.”
Meanwhile, the Customs Area Controller of the Tin Can Island Port Command, Comptroller Joe Anani, has reaffirmed the Nigeria Customs Service’s commitment to strengthening its partnership with the Association of Nigerian Licensed Customs Agents (ANLCA), while announcing plans to commence an extensive sensitisation programme on the Federal Government’s Green Tax surcharge.
Speaking during a visit to the ANLCA Tin Can Island Port Chapter Secretariat Anani said the awareness campaign would target both freight forwarders and Customs officers to ensure a smooth implementation of the new policy.
According to him, the Green Tax regime offers reduced levies for brand-new vehicles as well as some reductions for used vehicles, making it imperative for licensed customs agents to fully understand the policy and properly educate importers.
“In the area of sensitisation, we will continue to ensure that members of ANLCA are carried along in every training we organise at the Tin Can Island Port Command. There will be an immediate sensitisation on the Green Tax surcharge for freight agents and Customs officials.
“The summary of the surcharge is that levies are being reduced for brand-new vehicles as well as some reduction for used vehicles. We expect the sensitisation programme will put freight agents in a better position to enlighten and educate their importers,” Anani said.
Responding, Chairman of the ANLCA Tin Can Island Port Chapter, Prince Olawale Cole, welcomed the initiative and pledged the association’s continued support for the Customs command.
“I want to assure you that we will continue to extend that hand of partnership and collaboration under your leadership at the command,” Cole said.
