The Federal Government of Nigeria has announced plans to introduce a new “green tax” surcharge on vehicles with high-capacity engines as part of its 2026 fiscal policy measures.
Beginning July 1, 2026, vehicles with engine capacities of 2,000cc and above will attract a levy ranging between 2 percent and 4 percent, in a move aimed at reducing carbon emissions and promoting cleaner energy alternatives.
According to policy details, smaller vehicles, mass transit systems, and electric vehicles will be exempted from the surcharge, reflecting the government’s intention to encourage environmentally friendly transportation options.
Officials say the initiative is designed to align Nigeria with global efforts to combat climate change by discouraging the use of high-emission vehicles while incentivising the adoption of cleaner technologies.
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Economic analysts note that while the policy may increase costs for owners of larger vehicles, it could also accelerate a shift toward fuel-efficient and low-emission alternatives in the long term.
The introduction of the green tax marks another step in Nigeria’s broader environmental and fiscal reform strategy, as authorities seek to balance economic growth with sustainable development goals.


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