Nigeria Implements New Tax Rules on Large-Engine Vehicle Imports to Promote Cleaner Transport
Nigeria has introduced a new tax policy targeting imported vehicles with large engine capacities, as part of its 2026 fiscal policy framework. Approved by President Bola Tinubu, the policy imposes a surcharge ranging from 2% to 4% on vehicles with engine sizes between 2,000cc and above, effective from July 1, 2026. Vehicles with engine sizes between 2,000cc and 3,999cc will incur a 2% levy, while those with 4,000cc and above will face a 4% charge. Exemptions are provided for smaller vehicles under 2,000cc, mass transit buses, electric vehicles (EVs), and locally assembled cars. This measure is part of a broader fiscal overhaul that includes reduced import tariffs and the adoption of the ECOWAS Common External Tariff. The policy aims to discourage high-emission imports, support domestic manufacturing, and align with Nigeria's environmental goals. 
