The Federal Government of Nigeria has announced a major fiscal intervention by removing all import duties and levies on electric vehicles and mass transit buses, a move specifically designed to mitigate the rising cost of transportation and accelerate the country’s transition to green energy. The disclosure, made on Monday, April 13, 2026, by the Special Assistant to the President on Social Media, Dada Olusegun, confirmed that President Bola Ahmed Tinubu directed the immediate implementation of zero-percent duty rates for these categories of vehicles. This policy shift, which drops the previous five-percent duty and associated levies to zero, forms part of a broader “2026 Fiscal Policy Measures” document signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, aimed at cushioning the inflationary impact of the ongoing Middle East energy crisis on the Nigerian populace.
Under the new tariff regime, the Federal Government has also scrapped the five-percent levy on manufacturing machinery to lower the cost of industrial production and encourage local assembly plants. The directive comes at a time when global oil prices have seen significant volatility due to the Israel–US–Iran conflict, which has disrupted shipping routes in the Strait of Hormuz and pushed the landing cost of traditional fuels to record highs. By eliminating barriers to the importation of electric vehicles and mass transit buses, the administration is seeking to provide affordable, cleaner mobility alternatives for the millions of Nigerians who rely on public transportation. The policy also includes a 90-day “Transition Phase” that began on April 1, 2026, to allow importers and the Nigeria Customs Service to adjust to the new rates without disrupting market supply.
The Minister of Finance, Wale Edun, emphasized that the decision to prioritize electric vehicles and mass transit infrastructure is a deliberate attempt to decouple Nigeria’s transport sector from the unpredictable fluctuations of the international crude oil market. In addition to the zero-duty for electric vehicles, the government has approved a reduction in duties for standard passenger vehicles from 70 percent to 40 percent, while essential commodities such as bulk rice and raw cane sugar also saw significant tariff cuts. These measures are expected to work in tandem with the Presidential Compressed Natural Gas Initiative to provide a diversified range of low-cost energy solutions for the transport industry. The Federal Ministry of Budget and Economic Planning has been tasked with monitoring the impact of these waivers to ensure that the benefits are passed directly to the consumers in the form of lower transport fares.
Automotive industry stakeholders and environmental advocates have lauded the zero-duty policy as a “game-changer” for the Nigerian automotive market. The Director General of the National Automotive Design and Development Council, Joseph Osanipin, noted that the removal of import duties will make electric vehicles more competitive against traditional internal combustion engine vehicles, potentially attracting international electric vehicle manufacturers to set up local assembly operations. However, experts warn that the success of the electric vehicle rollout will depend heavily on the rapid expansion of the national charging infrastructure and the reliability of the power grid. They maintain that while the fiscal waiver is an excellent first step, a comprehensive regulatory framework and investment in “battery-as-a-service” models will be necessary to sustain the transition.
The broader implications of this fiscal policy point toward a significant restructuring of Nigeria’s import economy toward sustainability and social welfare. By targeting the high cost of transportation through zero-duty on buses and electric vehicles, the Tinubu administration is attempting to address one of the primary drivers of food and service inflation. The move is also expected to bolster Nigeria’s commitment to the Paris Agreement on climate change by reducing carbon emissions in the transport sector. As the Nigeria Customs Service begins the full implementation of these waivers across the nation’s ports, the focus remains on the stability of the foreign exchange market to ensure that the intended price reductions are not neutralized by currency depreciation. For the average Nigerian commuter, the policy offers a glimmer of hope for a more affordable and efficient public transit system.
