NIGERIA TO INTRODUCE A 'GREEN TAX"ON HIGH -ENGINE VEHICLE

NIGERIA TO INTRODUCE A 'GREEN TAX"ON HIGH -ENGINE VEHICLE

April 26,2026,Abuja Nigeria.

The federal government of Nigeria has planned to introduce a new environmental levy,which is known as "green tax"the tax targeting big engine vehicles,as part of its 2026, fiscal policy.

The policy which is meant to commence on July 1,2026,will impose a 2%-4% increase on vehicles with engine capacity of 2,000cc which included SUVs, trucks are known for higher fuel consumption.

According to government sources the initiative of the new fiscal policy is made to encourage cleaner energy use and reduce the country's carbon footprint.

Under the initiative smaller vehicles is not included ,so as to promote the efficiency of fuel.

Economical analyst states that the fiscal policy tends to align with global environment,may also lead to higher cost of vehicle ownership, where Nigerians depends on larger vehicles for commercial and personal purpose.