By Abigail Odubela
The Federal Government has reduced import tariffs on both new and used vehicles as part of its 2026 Fiscal Policy Measures, even as the Nigeria Customs Service (NCS) projects a revenue target of ₦11.074 trillion for the 2026 fiscal year.
The Comptroller-General of Customs, Adewale Adeniyi, disclosed the development on Monday while defending the Service’s 2026 budget proposal before the National Assembly Committees on Customs and Excise in Abuja.
According to Adeniyi, the import tariff on used vehicles has been reduced from 15 per cent to five per cent, while the tariff on brand-new vehicles has been lowered from 20 per cent to 10 per cent.
The measure, he explained, forms part of the Federal Government’s efforts to implement the 2026 fiscal policy.
He explained that while the new policy was expected to improve revenue generation, the reduction in vehicle tariffs could negatively impact collections.
“We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection.
“Conversely, tariffs on vehicles and levies on vehicles have been reduced significantly. For used vehicles, it has been reduced from 15 percent to five percent, and for brand-new vehicles, the tariffs have been reduced from 20 percent to 10 percent. So we believe that this is something that may also negatively affect revenue.” he said.
Adeniyi told the committee the Service generated N7.258 trillion in revenue between January and December 2025, surpassing its approved target for the year.
Despite the reduction in tariffs, the NCS has set an ambitious revenue target of ₦11.074 trillion for 2026.
He said the target comprised N5.542 trillion from the Federation Account, N1.491 trillion from non-Federation collections, N2.973 trillion from Import VAT and N1.264 trillion from the four per cent Free-on-Board levy.
Adeniyi expressed confidence that the Service would meet its target through the Unified Customs Information System, known as B’Odogwu, alongside tighter post-clearance audits, intelligence-driven enforcement, stronger compliance measures and enhanced trade facilitation.
He put the Service’s proposed expenditure for 2026 at N1.235 trillion, covering N421.70 billion for personnel costs, N307.77 billion for overheads and N565.93 billion for capital projects.
The revenue projection and the Service’s expenditure proposal received the approval of the National Assembly committees during the budget defence session.
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