With the recent customs duty rates, Tokunbo cars are no longer as affordable as they used to be in Nigeria.
In 2025, dealers were lamenting, buyers were hesitating, and importers were counting costs twice, due to the new customs duty rates introduced for 2026 that reshaped the entire vehicle import landscape in Nigeria.
This is due to the approved Nigeria Customs Service (NCS) four percent free on board (FOB) valuation charge, which caused concern among importers, clearing agents, and the business community, who complained about the consequences of an increase in the cost of clearing for the citizens.
Also, according to The Guardian report, “stakeholders have warned that the cost of clearing imported vehicles and general cargo could spike by as much as 40 per cent.”
Meanwhile, the government has quietly doubled several customs fees, effective January 1, 2026, through a legal notice published on Christmas Day.
These changes directly affect how much Nigerians now pay to bring in used vehicles, especially Tokunbo cars.
New Customs Duty Rates for Tokunbo Cars in 2026
Under Nigeria’s updated customs framework for 2026, import duties and levies on vehicles have been restructured, especially for used cars, known as tokunbo.
According to Konnect NG’s 2026 clearing cost guide, the official charges for clearing imported vehicles now include the following:
Import duty: 20%
NAC levy: 15% (used cars) and 20% for new cars.
VAT: 7.5%
This means that for every tokunbo car imported into Nigeria, total statutory charges now hover between 42% and 45% of the vehicle’s CIF value (Cost, Insurance, and Freight) before adding shipping, terminal, and agent fees.
In simple terms, if a car costs N10 million to land, you are looking at over N4 million in customs-related payments alone.
Why Customs Increased Duty on Tokunbo Cars
Nigeria’s customs tariff changes align with the ECOWAS Common External Tariff (CET) 2022–2026 framework, which aims to: Encourage local vehicle assembly, reduce dependency on imported used cars, increase government revenue, and stabilise foreign exchange demand.
A policy review published in 2025 also showed that used vehicles now attract 20%–35% duty depending on age, engine capacity, and valuation, with additional levies applied across the board.
The New 4% FOB Levy: Another Cost Layer
Plus the duty and VAT, the Nigeria Customs Service introduced a 4% Free-On-Board (FOB) levy on all imports, including vehicles. And this levy replaced the former 1% Comprehensive Import Supervision Scheme (CISS) charge.
This means a tokunbo car valued at N20 million now attracts an additional N800,000 in FOB levy, compared to the previous N200,000.
The new customs duty rates for 2026 have quietly rewritten Nigeria’s tokunbo car market. Importing used vehicles now costs significantly more, and those expenses inevitably land on the buyer’s shoulders.
While the policy aims to boost local manufacturing and revenue, it also makes personal mobility harder for millions of Nigerians. For now, smart buyers are adjusting — comparing prices, considering alternatives, and thinking twice before importing.
Credit: Nigerian Tribune