Adewale Adeniyi, comptroller-general of the Nigeria Customs Service, announced yesterday that the federal government has slashed import duties on used vehicles to five percent and new vehicles to ten percent. He made the disclosure while presenting the service's 2026 budget proposal to the House of Representatives Committee on Customs and Excise.
The tariff cuts are part of measures embedded in the 2026 fiscal policy framework, Adeniyi explained. He acknowledged the move could boost overall revenue collection but warned that the vehicle duty reductions might offset some gains.
"We have the new excise tariff provided in the 2026 fiscal policy," he said. "These measures will increase our revenue collection."
Adeniyi noted that used vehicle tariffs fell from 15 percent while brand-new vehicle duties dropped from 20 percent. "We believe that this may also negatively affect revenue," he added.
Lawmaker Alex Mascot from Abia questioned whether five percent tariffs would actually deter importers from sending goods through neighbouring countries. He pointed out that high duties continue to push traders toward Cotonou and other neighbouring ports.
The comptroller-general responded that implementation began in May. He didn't elaborate on whether the rate would be competitive enough to retain cargo flows within Nigeria's borders.
Committee chairman Leke Abejide hailed the tariff review as beneficial for ordinary Nigerians. "The Nigerian government is doing something good for the public," he told reporters.
Abejide urged citizens to recognise the effort, saying Nigerians had long demanded such relief. "We should commend President Bola Ahmed Tinubu for doing this for the public," he said.
Adeniyi revealed that customs generated N7.258 trillion between January and December 2025, surpassing the approved target. The figure represents an 18.89 percent positive variance, or N1.153 trillion above target.
Several headwinds constrained collections despite the strong result, he noted. These included suspension of excise duty on telecoms, the continued freeze on green tax introduced in 2023, and government policies promoting domestic healthcare manufacturing.
The presidential initiative backing compressed natural gas and electric vehicles also reduced import-related revenue, Adeniyi said. High volumes of goods covered by import duty exemption certificates further dented collections.
Imports valued at N34.538 trillion qualified for revenue concessions in 2025, according to the customs chief. Petroleum products accounted for 56.40 percent, military imports 40.52 percent, and exemption certificates and other items made up the remaining 3.08 percent.
Global trade disruptions from the Russia-Ukraine war also impacted import patterns, particularly wheat shipments from the region, Adeniyi told lawmakers. These external shocks created additional pressure on customs revenue streams.
