The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, has announced that the Federal Government has reduced import tariffs on used vehicles from 15 per cent to five per cent, while tariffs on brand-new vehicles have been cut from 20 per cent to 10 per cent.
Adeniyi disclosed this on Tuesday while appearing before the House of Representatives Committee on Customs and Excise to defend the Nigeria Customs Service’s 2026 budget proposal.
He explained that the revised vehicle excise tariffs are part of the 2026 fiscal policy measures.
According to him, while the new fiscal measures are expected to improve overall revenue generation, the reduction in vehicle tariffs could have a negative impact on customs revenue.
“We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection,” Adeniyi 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, Alex Mascot, a lawmaker representing Abia State, questioned whether the tariff reduction would be sufficient to discourage importers from diverting cargo through neighbouring countries such as Cotonou.
“If five per cent has been reduced from the fee that is paid when you import goods into the country, why then do people still move their goods to Cotonou? I am aware that a lot of importers are discouraged from bringing their goods into the country because of the high tariffs,” he said.
Responding, Adeniyi noted that implementation of the revised tariff policy began in May.
Chairman of the committee, Leke Abejide, described the tariff review as a welcome relief for Nigerians.
“I want the general public to know that the Nigerian government is doing something good for the public,” Abejide said.
“People have been clamouring for this, and it has happened. We should commend President Bola Ahmed Tinubu for doing this for the public.”
Adeniyi also revealed that the Nigeria Customs Service generated N7.258 trillion in revenue between January and December 2025, surpassing its approved annual target.
He said the service exceeded its target by N1.153 trillion, representing a positive variance of 18.89 per cent.
According to him, the performance was recorded despite several challenges, including the suspension of excise duty on telecommunications services, the continued suspension of the proposed Green Tax introduced in 2023, and government fiscal policies promoting local production of healthcare products, which reduced import duty and VAT collections on medical imports.
He added that the Presidential initiative on Compressed Natural Gas (CNG) and electric vehicles also reduced revenue from imports, alongside the high volume of imports covered by Import Duty Exemption Certificates (IDEC), VAT orders, and Schedule II of the Common External Tariff (CET).
Adeniyi disclosed that imports worth N34.538 trillion qualified for revenue concessions in 2025, comprising 56.40 per cent petroleum products, 40.52 per cent military imports, and 3.08 per cent IDEC and other items.
He further noted that global trade disruptions caused by the Russia-Ukraine war also affected import volumes, particularly wheat shipments from the region.
Looking ahead, Adeniyi said the Nigeria Customs Service has been assigned a revenue target of N11.074 trillion for the 2026 fiscal year.
The target comprises N5.542 trillion for the federation, N1.491 trillion in non-federation revenue, N2.773 trillion from import VAT, and N1.266 trillion from Free-on-Board (FOB) collections.
To meet the target, he said the service will fully implement the Unified Customs Information System (UCIS), also known as B’Odogwu, to automate customs operations and improve revenue collection.
Other strategies include strengthening post-clearance and real-time systems audits, expanding the Authorised Economic Operator (AEO) and Advance Rulings programmes to facilitate trade, deploying geospatial technology and joint border patrols to combat smuggling, and enhancing collaboration with stakeholders.
Adeniyi added that the new excise tariff regime under the 2026 fiscal policy, the planned reintroduction of the Green Tax, and other fiscal measures are expected to support revenue generation despite uncertainties in global trade arising from tensions involving the United States, Israel, and Iran.
For the 2026 fiscal year, the Customs Service proposed an expenditure budget of N1.235 trillion, to be funded by N949.86 billion from the four per cent FOB allocation, N55.47 billion from its two per cent VAT share, and N230.04 billion for ongoing capital projects.
The proposed expenditure includes N421.70 billion for personnel costs, N307.77 billion for overheads, and N565.93 billion for capital projects.
