FG Waives Import Duties on Mass Transit Buses, Electric Vehicles

President Bola Tinubu

The Federal Government has announced the waiver of import duties on mass transit buses, electric vehicles (EVs), and other selected items as part of new fiscal policy measures aimed at easing transportation costs and promoting cleaner energy adoption.

The policy, which forms part of the 2026 fiscal framework, is designed to stimulate key sectors of the economy while supporting affordability and sustainability in Nigeria’s transport system. It also aligns with broader efforts to encourage investment in environmentally friendly technologies.

According to details of the policy approved by the government, mass transit buses and electric vehicles are exempted from certain import duties and levies, particularly under the newly introduced green tax regime.

The government said the move is intended to reduce the cost of public transportation, improve mobility, and accelerate the adoption of cleaner energy solutions across the country. By removing import duties on these categories of vehicles, authorities hope to encourage operators to invest in modern and energy-efficient transport systems.

The policy also includes exemptions for vehicles with smaller engine capacities and locally manufactured automotive components, signalling a broader strategy to support both environmental sustainability and domestic production.

In addition to the waivers, the government introduced a new green tax surcharge targeting certain imports, although the exempted categories such as mass transit buses and EVs will not be affected by the levy. The measures are part of a wider tariff adjustment covering over 100 items, aimed at balancing revenue generation with economic growth.

Officials say the initiative will not only lower transportation costs for Nigerians but also contribute to reducing carbon emissions and modernising the country’s transport infrastructure.

The policy took effect from April 1, 2026, with a transition window provided for importers who had initiated transactions before the implementation date.