LAGOS: Nigeria has unveiled a new green tax targeting large-engine vehicles as part of its 2026 fiscal policy measures, according to a government circular obtained.
Effective July 1, cars with engine capacities between 2,000cc and 3,999cc will incur a 2% surcharge, while those with engines of 4,000cc or more will face a 4% levy.
Smaller vehicles under 2,000cc, mass transit buses, electric cars, and locally manufactured vehicles will be exempt.
The measure, approved on April 1, forms part of a broader fiscal package that includes revised import tariffs, changes to excise duties, and the adoption of the ECOWAS common tariff.
Authorities have granted a 90-day grace period for importers, manufacturers, and service providers before the new excise rates take effect.
Finance Minister Wale Edun said the policy, which replaces the 2023 excise duty and import tariff framework in its entirety, will be published in the official gazette.