Tokunbo Car Buying Guide Nigeria 2026: The New Customs Charges (Levy Cut to 5%, Green Tax), Papers Checks and How Not to Get Burned

📌 Quick answer (checked 13 October 2026): Importing a used car got cheaper on paper in 2026. The vehicle levy on used (tokunbo) cars fell from 15% to 5% (new cars from 20% to 10%), but a new green tax of 2% (2,000–3,999cc) or 4% (4,000cc and above) applies from 1 July 2026. With 20% import duty, a 7% surcharge on the duty, the 4% FOB charge and 7.5% VAT, government charges on a small-engine tokunbo come to roughly 40% of its CIF value before shipping, terminal and agent fees. Whatever you buy, verify the customs papers and VIN before you pay: a car with unpaid or fake duty can be seized from you.

What Customs Charges on an Imported Car in 2026

Rates as listed by BusinessDay on 31 August 2026 and by the Customs Comptroller-General in July 2026. Electric, CNG and LPG vehicles have been exempted from import duty and VAT, and the green tax does not apply to electric vehicles, approved mass-transit buses or qualifying locally made vehicles. Confirm the current tariff with a licensed clearing agent; rules have changed several times in two years.

A worked example

For a used car with a CIF value of ₦10 million and an engine under 2,000cc, these charges come to about ₦3.9 million (roughly 40%) by our calculation. With a 2.5-litre engine, the 2% green tax takes it to about ₦4.2 million. Under the old 15% levy, the same small car would have cost about ₦5 million in charges. Shipping, port and terminal charges and the clearing agent’s fee come on top.

Customs converts dollar values into naira at its own exchange rate, so a weaker naira raises clearing costs even when rates do not change. Customs also values cars from their VIN, which can be higher than what you paid at auction.

Two Ways to Buy a Tokunbo

Buy locally (best for most people). Buy from established dealers or car marts with physical premises. The duty has already been paid and is built into the price, so your job is to verify papers and inspect the car. Treat online listings as leads only; never pay a deposit before seeing the car with a mechanic.

Import it yourself. This can save money on some models, but it is a project. Use a licensed clearing agent, budget for every charge above plus shipping, terminal and agent fees, and confirm the current age limit for imported vehicles with your agent before you bid. An over-age car can be seized.

Check the Papers Before Any Money Moves

• Customs papers: ask for the complete cleared customs documents and have a licensed clearing agent confirm the duty payment is genuine. A car with unpaid, underpaid or forged duty can be impounded from whoever owns it, including an innocent buyer.
• VIN: match the chassis number on the car (door frame, windscreen base, engine bay) with every document. Walk away from any mismatch or sign of tampering.
• History check for US imports: run the VIN through a vehicle-history service to find salvage titles, major accidents, flood damage and mileage rollbacks. Many cheap US imports are rebuilt auction cars; that can be acceptable only if you know and the price reflects it.
• Registered cars: get the registration documents and a clear ownership trail.

Inspect It With a Mechanic

• Engine: cold start, smoke, leaks and idle.
• Gearbox: smooth changes through all gears on a proper test drive. Automatic gearbox faults are the classic tokunbo money pit.
• Flood signs: musty smell, water lines under carpets, rust on seat rails and in the fuse box.
• Accident signs: uneven panel gaps, overspray, mismatched paint, airbag warning lights.
• Mileage: does wear on the pedals, steering wheel and seats match the odometer?
• Electrics and AC: test every switch, window and the air conditioning.
• Tyres and underside: uneven tyre wear can reveal alignment or chassis damage.

A seller who resists an inspection or rushes you has answered your question.

Prices, Negotiation and Red Flags

Tokunbo prices depend on model, year, condition, mileage and city, and they move with the exchange rate. Compare at least three similar cars from different sellers, then negotiate using what your mechanic finds. Walk away from:

• prices far below the market (often unpaid duty, a salvage history or a scam);
• “the customs papers are coming”;
• pressure such as “another buyer is coming this evening”;
• requests for payment into a personal account before documents are checked;
• any VIN irregularity.

After You Buy

Complete the change of ownership, register the car and get your plates, take out at least third-party insurance (the legal minimum), and make sure your driver’s licence is valid. If running costs worry you, see our guide to CNG conversion.

Frequently Asked Questions

What is the import duty on tokunbo cars in 2026?

20% import duty plus a 7% surcharge on the duty, a 5% vehicle levy (down from 15%), the 4% FOB charge, 7.5% VAT and, from 1 July 2026, a green tax of 2% or 4% for engines of 2,000cc and above.

Did tokunbo cars get cheaper in 2026?

The levy cut lowers charges, especially on small-engine cars, but the green tax adds cost for bigger engines, and the exchange rate and Customs valuations still drive the final price.

How much does it cost to clear a car?

For a small-engine used car, government charges come to roughly 40% of its CIF value by our calculation, plus shipping, terminal charges and the agent’s fee. Get a written quote from a licensed clearing agent.

How do I verify customs papers?

Ask for the complete cleared documents, have a licensed clearing agent confirm they are genuine, and match the VIN on the car with every document.

Is there an age limit for imported cars?

Yes. Confirm the current limit with a licensed clearing agent before buying abroad; over-age vehicles can be seized.

Sources

1. BusinessDay, “Importing a car in 2026? Tax, duties you should know”, 31 August 2026.
2. Legit.ng, “Nigeria Customs confirms FG’s slash in import duty on used, new vehicles”, 7 July 2026.
3. Clea, “Nigeria’s new vehicle import levy and green tax explained” (green tax bands and exemptions).

This is general guidance, not financial advice. Last updated: 13 October 2026 · NaijaSabi Finance Desk.