Buying a used imported car in Nigeria has become significantly more expensive in 2026 after the Federal Government introduced a revised customs duty structure that sharply increases the cost of clearing vehicles at the ports.
Under the updated customs framework, import duties and levies on vehicles — particularly used cars commonly known as tokunbo — have been restructured, raising the overall statutory charges paid by importers before a vehicle can leave the port.
According to the 2026 clearing cost guide published by logistics platform Konnect NG, imported vehicles now attract a 20 per cent import duty, a 15 per cent National Automotive Council levy for used cars, and a 7.5 per cent value added tax. New vehicles face a higher National Automotive Council (NAC) levy of 20 per cent.
Taken together, these statutory charges mean that clearing a used vehicle now typically costs between 42 and 45 per cent of the car’s cost, insurance and freight value, even before additional expenses such as shipping, terminal handling charges and clearing agent fees are added.
In practical terms, a vehicle with a landed value of ₦10 million could attract more than ₦4 million in customs-related payments alone, significantly increasing the final price paid by the buyer.
Industry observers say the new duty structure reflects Nigeria’s effort to align its import tariffs with the Economic Community of West African States Common (ECOWAS) External Tariff framework covering the period from 2022 to 2026. The policy is designed to encourage domestic vehicle assembly, reduce the country’s heavy dependence on imported used vehicles, boost government revenue and ease pressure on foreign exchange reserves.
A policy review conducted in 2025 showed that duties on used vehicles can range between 20 and 35 per cent depending on factors such as the car’s age, engine capacity and official valuation, with additional levies applied across categories.
The financial burden on importers has also increased with the introduction of a new 4 per cent Free-On-Board (FOB) levy on all imports, including vehicles. The charge replaces the previous 1 per cent Comprehensive Import Supervision Scheme (CISS) fee and represents a substantial jump in cost for traders and dealers. For example, a tokunbo car valued at ₦20 million now attracts roughly ₦800,000 in FOB levy alone, compared with ₦200,000 under the previous system.
Economic analyst Olufemi Adewale said the government faces a delicate balance between protecting local industry and ensuring mobility remains accessible.
“Nigeria imports hundreds of thousands of used vehicles every year because locally assembled cars remain far beyond the reach of most households,” he said. “When duties increase this sharply, the immediate effect is higher prices for consumers.”
For many Nigerians, tokunbo vehicles remain the most practical option for personal mobility and small business operations. Dealers say the latest duty adjustments are already pushing up prices and could reduce demand in a market already strained by inflation and currency volatility.