Green Tax: Customs Targets High-Emission Vehicle Imports Ahead of July 1 Implementation

The Nigeria Customs Service (NCS) has intensified efforts to prepare stakeholders for the implementation of the Federal Government's Green Tax policy through a nationwide sensitization campaign aimed at discouraging the importation of high-emission vehicles while promoting environmentally sustainable transportation across the country.

The sensitization exercise for officers and stakeholders in Zone 'C' was held on Tuesday, June 30, 2026, at the Port Harcourt II Area Command, Onne, ahead of the official commencement of the policy on July 1, 2026. The initiative forms part of the Federal Government's broader environmental and fiscal reforms designed to reduce carbon emissions, encourage cleaner energy alternatives, and strengthen Nigeria's commitment to climate-friendly policies.

Addressing participants during the programme, the Acting Zonal Coordinator of Zone 'C', Assistant Comptroller-General of Customs, Pascal Chibuoke, described the Green Tax as a strategic government initiative that extends beyond revenue generation to embrace environmental responsibility. According to him, the policy is expected to promote environmentally responsible practices among vehicle importers while aligning Nigeria's tax administration with international sustainability standards. He noted that the successful implementation of the policy would require adequate awareness among Customs officers and stakeholders to ensure uniform interpretation and seamless enforcement across various Commands.

During the technical presentation, Comptroller Murtala Mu'azu of the Tariff and Trade Department provided detailed explanations on the structure of the Green Tax and the categories of vehicles affected. He explained that vehicles with engine capacities below 2,000cc would remain exempt from the Green Tax, while imported vehicles with engine capacities ranging from 2,000cc to 3,999cc would attract an additional two per cent surcharge. Similarly, vehicles with engine capacities of 4,000cc and above would be subject to a four per cent surcharge under the new policy.

Comptroller Mu'azu further disclosed that electric vehicles, mass transit buses and locally manufactured vehicles have been exempted from the Green Tax in order to encourage cleaner transportation and support Nigeria's domestic automobile industry. However, he clarified that hybrid vehicles would still be liable under the new tax regime. In addition to the Green Tax, he announced adjustments to existing vehicle import levies, explaining that imported new vehicles would now attract a 10 per cent levy, while used vehicles would continue to attract five per cent.

He also revealed that trailers and truck heads classified under Heading 87.16 would attract a 25 per cent levy, a measure intended to stimulate local manufacturing and reduce dependence on imported heavy-duty vehicles.

The Customs official reassured stakeholders that vehicles imported into Nigeria before the commencement of the policy would not be affected by the new tax.

Bringing the programme to a close, the Customs Area Controller of Port Harcourt II Area Command, Comptroller Aliyu Alkali, urged officers to effectively apply the knowledge acquired during the sensitisation exercise and provide accurate information to importers and other stakeholders seeking clarification on the implementation of the Green Tax.

Key Quotes

"This initiative will encourage environmentally responsible practices, improve revenue generation and align the country's tax policies with global sustainability objectives," Acting Assistant Comptroller-General Pascal Chibuoke said.

"Vehicles below 2,000cc are exempt, while those between 2,000cc and 3,999cc will attract a two per cent surcharge. Vehicles above 4,000cc will attract four per cent," Comptroller Murtala Mu'azu explained.

The Green Tax is one of several fiscal and environmental reforms introduced by the Federal Government to address the growing challenges of climate change, environmental pollution and excessive carbon emissions associated with older and high-engine-capacity vehicles.

Many countries across Europe, Asia and Africa have introduced similar environmental taxation policies to discourage the use and importation of highly polluting vehicles while encouraging investment in cleaner alternatives such as electric vehicles and locally manufactured automobiles.

In Nigeria, the policy also complements ongoing efforts to develop the domestic automotive industry by providing incentives for locally assembled vehicles and encouraging investment in local manufacturing.

Environmental experts have consistently linked vehicle emissions to poor air quality, respiratory illnesses and increased greenhouse gas emissions. By imposing higher charges on larger engine vehicles, the Federal Government hopes to gradually influence import patterns in favour of cleaner and more fuel-efficient alternatives.

The policy also represents an attempt to balance environmental protection with economic objectives by generating additional government revenue while encouraging sustainable industrial growth.

For prospective vehicle importers, particularly individuals and businesses planning to import luxury vehicles or Sports Utility Vehicles (SUVs) with larger engine capacities, the Green Tax is expected to increase overall import costs.

Conversely, importers considering electric vehicles or locally manufactured automobiles may benefit from the exemptions provided under the policy, making these alternatives comparatively more attractive.

Industry stakeholders may therefore need to review their import strategies and pricing models to reflect the new tariff structure before placing future orders.

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The introduction of the Green Tax signals a significant shift in Nigeria's approach to environmental governance and fiscal policy. While the objectives of reducing carbon emissions and encouraging cleaner transportation are commendable, the effectiveness of the policy will largely depend on implementation, public awareness and the availability of affordable alternatives.

Electric vehicles remain relatively expensive for many Nigerians, and charging infrastructure is still limited in several parts of the country. Unless these challenges are addressed alongside the new tax regime, many consumers may continue to rely on conventional fuel-powered vehicles despite the additional costs.

Furthermore, the policy presents an opportunity for local automobile manufacturers to expand production and meet growing demand for locally assembled vehicles. If effectively implemented, the Green Tax could contribute not only to environmental sustainability but also to industrial development, job creation and long-term economic growth.