Nigeria has officially introduced a “Green Tax” aimed at curbing carbon emissions and accelerating the adoption of electric vehicles (EVs).
Effective April 1, 2026, the new levy targets high-displacement internal combustion engines, making it significantly more expensive to import SUVs and heavy trucks into the country.
This move, confirmed by Finance Minister Wale Edun, aligns with Nigeria’s Energy Transition Plan, which seeks a 97% reduction in transport emissions through mass EV adoption.
The Levy Breakdown: Who Pays?
The surcharge is applied as an additional percentage on top of standard import duties, specifically targeting vehicles that contribute most to greenhouse gas emissions due to engine size.
| Engine Capacity (cc) | Surcharge Rate | Target Vehicle Types |
| 4,000 cc and Above | 4% | Heavy SUVs, Large Trucks, Luxury Sports Cars. |
| 2,000 cc to 3,999 cc | 2% | Standard SUVs, Pickup Trucks, Large Sedans. |
| Below 2,000 cc | 0% (Exempt) | Smaller passenger cars, motorcycles. |
| Electric Vehicles (EVs) | 0% (Exempt) | All EVs and mass transit buses. |
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Implementation Dates: The Green Tax took effect on April 1. However, a secondary Excise Duty for manufacturers and importers is scheduled to kick in on July 1, 2026.
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Logistics Impact: Mass transit buses remain exempt to prevent a spike in public transportation fares for the average Nigerian, who is already grappling with 15.38% inflation.
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