The federal government has reduced import duties on both new and used vehicles under its 2026 fiscal policy measures, the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, has disclosed.
Mr Adeniyi announced the tariff review on Monday while defending the service’s 2026 budget proposal before the House of Representatives Committee on Customs and Excise.
He stated that the import duty on used vehicles has been lowered from 15 per cent to five per cent, whilst the rate for brand-new vehicles has been cut from 20 per cent to 10 per cent.
According to him, the revised tariff regime forms part of the government’s broader fiscal policy for 2026 and is expected to support economic activity. However, it could reduce customs revenue from vehicle imports.
“We have the new excise tariff, which is provided in the 2026 fiscal policy. We believe that these measures will increase our revenue collection,” Mr Adeniyi told the lawmakers.
“Conversely, during the same tariff measures that were given to us, tariffs on vehicles and levies on vehicles have been reduced significantly. For used vehicles, the tariff has been reduced from 15 per cent to 5 per cent, and for brand-new vehicles, from 20 per cent to 10 per cent. So, we believe that this is something that may also negatively affect revenue,” he added.
Lawmakers react
During the session, Alex Mascot (Abia State) questioned whether the reduction would be sufficient to discourage importers from diverting cargo through neighbouring ports, particularly Cotonou.
“If five per cent has been reduced from the fee that is paid when you import goods into the country, why then do people still move their goods to Cotonou?” he asked. He argued that high import charges had long pushed many traders to clear their goods outside Nigeria and urged the Customs Service to assess whether the new policy would address the challenge.
Responding, Mr Adeniyi said implementation of the revised tariff structure commenced in May.
Chairman of the committee, Leke Abejide (APC, Kogi), welcomed the policy, describing it as a positive step for Nigerians. He said many citizens had consistently demanded lower vehicle import duties and commended President Bola Tinubu’s administration for approving the reduction.
2025 budget performance
Mr Adeniyi also presented the NCS 2025 revenue performance, revealing that the service generated ₦7.258 trillion between January and December, surpassing its approved target. He said the figure exceeded the annual target by ₦1.153 trillion, representing an 18.89 per cent increase.
Despite the strong performance, he noted that several government policies constrained revenue collection during the year. These included the suspension of excise duty on telecommunications services, the continued suspension of the proposed green tax introduced in 2023, and fiscal incentives aimed at encouraging local production of healthcare products, which reduced customs duty and Value Added Tax (VAT) collections on imported medical items.
He added that the presidential initiative promoting Compressed Natural Gas (CNG) and electric vehicles also reduced revenue from imports in those sectors.
According to him, revenue was further affected by the large volume of imports granted concessions through Import Duty Exemption Certificates (IDEC), VAT orders, and Schedule II of the Common External Tariff (CET). Mr Adeniyi disclosed that imports valued at ₦34.538 trillion benefited from various revenue waivers in 2025. Petroleum products accounted for 56.40 per cent of the concessions, military imports made up 40.52 per cent, whilst IDEC and other qualifying imports represented the remaining 3.08 per cent.
He also cited disruptions to global trade caused by the Russia-Ukraine war, particularly its impact on wheat imports into Nigeria.
Customs projects ₦11.074tn revenue in 2026
Looking ahead, the Customs Service is targeting ₦11.074 trillion in revenue for the 2026 fiscal year. Mr Adeniyi said the projection comprises ₦5.542 trillion for the federation account, ₦1.491 trillion in non-federation revenue, ₦2.773 trillion from import VAT, and ₦1.266 trillion from free-on-board (FOB) collections.
To achieve the target, he said the service would accelerate the deployment of the Unified Customs Information System (UCIS), also known as B’Odogwu, to automate customs operations and improve efficiency. Other strategies include expanding post-clearance and real-time audits to strengthen compliance, extending the Authorised Economic Operator (AEO) and advance rulings programmes to facilitate trade, deploying geospatial technology and joint border patrols to combat smuggling, and deepening engagement with stakeholders.
Mr Adeniyi added that the implementation of the new excise tariff regime, the planned reintroduction of the green tax, and other fiscal measures would strengthen revenue generation despite uncertainties in global trade arising from geopolitical tensions involving the United States, Israel, and Iran.
Proposed expenditure
The Customs Service is proposing an expenditure of ₦1.235 trillion for the 2026 fiscal year. According to Mr Adeniyi, the budget will be financed through ₦949.86 billion from the four per cent FOB allocation, ₦55.47 billion from its two per cent share of VAT revenue, and ₦230.04 billion earmarked for ongoing capital projects.
The proposed spending includes ₦421.70 billion for personnel costs, ₦307.77 billion for overheads, and ₦565.93 billion for capital expenditure.
Consolidated Hallmark Insurance Limited, a subsidiary of Consolidated Hallmark Holdings Plc is proud to announce that its Managing Director/Chief Executive Officer, Mrs. Mary Adeyanju, has been named Insurance Woman of the Year 2026 at the Almond Insurance Industry Awards, held tonight at The Stable.
The award recognises outstanding women whose leadership, innovation and results are reshaping Nigeria’s insurance landscape. Mrs. Adeyanju’s win reflects her bold stewardship of the company, her focus on customer-centred service, and her drive to make insurance more accessible, trusted, and relevant to everyday Nigerians.
Under her leadership, Consolidated Hallmark Insurance has strengthened its market position, embraced digital transformation, and deepened its commitment to claims excellence and stakeholder value.
Accepting the award to a standing ovation, an emotional Mrs. Adeyanju dedicated the honour to the Group Chief Executive Officer, Mr. Eddie Efekoha.
“This award belongs to a man who saw potential in me long before I saw it in myself,” she said. “For over 20 years, Mr. Efekoha has inspired me, guided me and poured so much into my career. Every step I have taken, I have taken on the foundation he built. I am deeply grateful.”
Her tribute underscores a story of mentorship, trust and the power of investing in people, values that sit at the heart of the Consolidated Hallmark culture.
The recognition is a win for the entire organisation and for women in the insurance industry, proof that purposeful leadership and sustained support can open doors for the next generation.
Consolidated Hallmark Insurance Limited remains committed to delivering value, protecting livelihoods and setting new standards of excellence in the industry.
About Us:
Consolidated Hallmark Insurance Limited is one of the leading General Business and Special Risk Insurance underwriters in Nigeria.
Over the years, the company has played a leadership role in the underwriting of key transactions in Aviation, Oil & Gas, Marine Cargo and Hull Business as well as in Motor insurance business.
We have built a reputation on Professionalism, Integrity and Excellent Service Delivery. Leveraging on the capabilities and unique skills of the entire group, we provide premium risk management solutions to our clients. Our commitment to serving you better has seen us make key investments in our People, Technology and Processes.
Baze University, Abuja, has acquired two training aircraft from Austria as it expands its investment in aviation education.
The aircraft arrived at the Nnamdi Azikiwe International Airport, Abuja, on Friday and received a traditional water cannon salute, according to reports by Nigerian media.
The university’s founding Pro-Chancellor, Datti Baba-Ahmed, disclosed the acquisition, saying it would strengthen Nigeria’s aviation training capacity and support the development of skilled professionals.
Baze University acquires two aircraft as Baba-Ahmed expands aviation investment
The Vice-Chancellor, Abiodun Adeniyi, a professor, also described the development as part of a broader entrepreneurial vision to build institutions that contribute to national development.
The acquisition represents another expansion of Baze University, which has invested in higher education and healthcare before venturing into aviation training.
In a reflection shared on Facebook on Saturday, Mr Adeniyi described the development as an example of entrepreneurship driven by vision, patience, hard work and calculated risk-taking.
He said the acquisition illustrated how businesses could grow through personal investment, borrowing, reinvestment and diversification, rather than waiting until they had accumulated all the capital needed for expansion.
“Successful entrepreneurs do not necessarily wait to become debt-free before expanding. They distinguish productive borrowing from reckless indebtedness, deploying resources into assets that create lasting economic value,” he wrote.
Mr Adeniyi said the investment went beyond private wealth creation, arguing that businesses established around education, healthcare and aviation could contribute to national development by creating jobs, building local capacity and developing human capital.
He described such investments as an expression of economic patriotism, where entrepreneurship also responds to national needs.
Expanding into aviation
The two aircraft are expected to support practical flight training at Baze Aviation School, which is being developed in Bwari, Federal Capital Territory.
The school is part of the university’s plans to combine classroom instruction with practical aviation training. Its proposed facilities include a dedicated runway, hangar, terminal building, laboratories and simulation centres.
The Coordinator of the Aviation School, Aliyu Bello, said the aircraft would enable students to gain hands-on experience alongside ground-school instruction.
Mr Baba-Ahmed said the institution planned to train at least 600 professionals in areas including air traffic control, air rescue and firefighting, subject to approval by relevant regulatory authorities.
He also disclosed plans for an aerodrome hub with a runway measuring 1,800 metres by 30 metres, with an additional 15 metres.
The National Universities Commission has approved two undergraduate programmes at the university for the 2026/2027 academic session: Aviation Management under the Faculty of Management and Social Sciences and Aerospace Engineering under the Faculty of Engineering.
Mr Adeniyi said the university would become the first private university in Africa to operate its own aviation school.
Entrepreneurship and national development
Mr Adeniyi’s remarks place the aircraft acquisition within a broader debate about the role of private investment in addressing Nigeria’s development challenges.
Nigeria’s aviation industry requires specialised human resources across several fields, including pilots, aircraft maintenance engineers, air traffic controllers and other technical professionals. Training institutions that combine academic instruction with practical facilities could help expand the pool of skilled workers available to the sector.
However, aviation training is capital-intensive and requires substantial investment in aircraft, infrastructure, maintenance, safety systems and regulatory compliance.
Mr Adeniyi said the development demonstrated the importance of sustaining a vision through years of uncertainty and making investments that could generate long-term economic value.
He traced Mr Baba-Ahmed’s expansion from Baze University, established largely with personal resources and subsequently supported by bank financing, to investments in healthcare through Baze Hospital, higher education through Baba-Ahmed University in Kano and now aviation training.
The professor argued that investments in such sectors could help reduce dependence on foreign expertise while creating opportunities for Nigerians to acquire technical skills and participate in productive enterprises.
He said the benefits of entrepreneurship should not be measured only by wealth accumulated by investors but also by the institutions created, jobs generated and national needs addressed.
“Perhaps the lesson is that great enterprises are built not simply with money, but through vision, sacrifice, perseverance and the capacity to transform ambition into productive institutions,” Mr Adeniyi wrote.
He added that when private enterprise responds to national development priorities, it takes on significance beyond commercial success.
The vice-chancellor congratulated Mr Baba-Ahmed on the acquisition, describing it as another expression of a sustained investment philosophy whose benefits could extend beyond the investor.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.