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FG Mulls Reduction of Levy on Vehicles to 5%
By Adedapo Adesanya
The Nigerian Customs Service (NCS) is proposing a reduction in the levy paid on used or brand new vehicles to a negotiable 5 or 10 percent from 35 percent.
However, according to the Comptroller-General of Customs, Mr Hameed Ali, this is subject to the approval of the Ministry of Finance. He said this would help government generate more revenue.
Speaking while defending the Service’s 2020 budget before the House Committee on Customs recently, Mr Ali said if implemented, apart from raising revenue, it would discourage smuggling.
He said at the moment, Nigerian importers ship their containers to neighbouring ports, where duties and levies are very low compared with what is obtained in Nigeria.
“We have forwarded a proposal for the downward review of vehicle tariff to our supervising Ministry, which is the Finance Ministry, for consideration so that Customs duty on imported vehicles remain 35 percent while the levy be reduced from the current 35 percent to 5 or 10 percent.
“This position, if approved, will encourage compliance and boost revenue because the 70 percent duty and levy is encouraging smuggling of vehicles,” he told the lawmakers.
He further disclosed that the service was advocating the reintroduction of import taxes on petroleum products.
“The petroleum tax regime of 2004 before its suspension imposed N1.50k per litre of petroleum products. It is the considered opinion of the service that this regime be reintroduced in line with international best practices as it’s currently operational in over 36 countries at an average of $2.24 per gallon,” the customs chief said.
Mr Ali also identified some factors that were hindering the service’s revenue generation delivery;
“We could have done more in revenue generation but there are factors that made it difficult. We have government policies like 43 items that were banned from forex access by the CBN. It narrowed down imports due to forex restrictions. It reduced import and duties we collected.
“Secondly, most scanners are not working and it necessitated 100% physical examination of cargo. It hampered electronic examination of containers, which is faster and ensures quicker vessel turnaround.
“These scanners were procured in 1997. They came under a maintenance contract sort of arrangement but we introduced politics into it.
“We removed those foreigners hitherto handling them and put indigenous hands and they have died. We should not buy those type of scanner again. They keep requiring upgrade of software and systems and we can’t keep up,” he said.
By Modupe Gbadeyanka
A bill aimed at prohibiting hawking, trading or preaching inside commercial vehicles in Nigeria has been passed by the Senate.
The bill known as the Federal Road Safety Corps (Amendment) Bill, 2026, imposes fines between N50,000 and N100,000 for violations if assented to by the President.
The piece of legislation was passed by the red chamber of the National Assembly on Thursday and should later be transmitted to President Bola Tinubu for assent.
Members of the upper chamber of the parliament explained that the law was amended to discourage distractions in commercial vehicles and improve the safety of commuters.
In addition, motorists who fail to cooperate with officials of the Federal Road Safety Corps (FRSC) during roadside breath tests conducted on reasonable suspicion are liable to fines or imprisonment or both.
Lawmakers noted that this was to improve compliance with road safety regulations and reduce road crashes, as fines for driving under the influence of alcohol or intoxicating drugs were raised to N100,000 from N5,000, with the risk of spending two years behind bars.
It was also proposed that disobedience to traffic lights, road signs, pavement markings and other traffic control devices will now attract N100,000, while the fine for speed limit violations is now N100,000, with reckless driving now a fine of N100,000 or two years’ imprisonment.
By Dipo Olowookere
Residents and motorists plying the Aina Obembe Road in Baruwa, Ipaja, Lagos, may soon heave a sigh of relief as the excruciating traffic gridlock being experienced in the area both day and night may soon be a thing of the past.
This is because the chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, has directed those involved in indiscriminate truck parking along the road to remove the heavy-duty vehicles within one week, threatening to invoke appropriate enforcement measures for noncompliance with this directive.
Speaking during a meeting on Wednesday with the management of SENA Company, which owns the affected trucks, as well as the leadership of Oluwadara CDA and other key stakeholders like the Lagos State Traffic Management Authority (LASTMA), at the council’s secretariat, Mr Agbaje frowned at the prolonged inconvenience suffered by the community, stressing that public roads must remain accessible and safe for all users.
He emphasised the need for a collaborative approach in resolving the issue without undermining legitimate business operations, noting that he’s focused on finding a lasting solution to the gridlock experienced between Oluwaga and Aina Obembe, where parked trucks have continued to obstruct traffic, disrupt business activities, and pose safety concerns for residents and motorists.
He tasked the firm and the CDA to jointly identify and implement alternative parking arrangements that would remove all trucks from the affected roads and restore the free flow of traffic.
He declared that, “The welfare of our people remains our highest priority. No individual or corporate organisation should obstruct public infrastructure or create avoidable hardship for residents. We must ensure that economic activities coexist with public safety, order, and convenience.”
The council chief reaffirmed his administration’s commitment to promoting orderly development, ensuring safe and accessible roads, improving traffic management, and creating an environment where businesses can thrive alongside the well-being of residents.
By Adedapo Adesanya
The federal government has cut import levies on new and used vehicles by as much as 10 per cent in a move aimed at reducing the cost of vehicle importation, even as it commenced the implementation of a new Green Tax surcharge.
According to an update issued by the Nigeria Customs Service (NCS) on Wednesday, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent under the 2026 Fiscal Policy Measures, which took effect on July 1, 2026.
The customs said the policy is designed to ease the cost of vehicle imports while advancing the government’s environmental sustainability objectives through the newly introduced Green Tax.
The implementation also reduces the overall import duty on fully built passenger vehicles from 70 per cent to 40 per cent.
As part of the Green Tax framework, a new environmental surcharge of between two per cent and four per cent will apply to petrol-powered vehicles with engine capacities exceeding 2,000cc. However, mass transit buses, electric vehicles, and passenger cars with engines below 2,000cc are exempt from the surcharge.
Beyond the automobile sector, the fiscal measures also lower import duties on several essential goods. The duty on imported rice has been reduced from 70 per cent to 47.5 per cent, while crude palm oil now attracts a 28.75 per cent duty.
In addition, import duties on agricultural and manufacturing machinery have been completely removed to support local production, while Waste PET has been added to the export prohibition list to encourage domestic recycling.
