The Nigerian cooking gas market has taken another unexpected turn, with some major depots reducing their prices just 24 hours after a sharp increase sent LPG costs higher.

The price of liquefied petroleum gas, commonly known as cooking gas, has continued to fluctuate, creating uncertainty for households, retailers and businesses across the country.

That is why people who bring vehicles into Nigeria need to know what each fee covers before trying to figure out the total cost.

According to the system that follows the ECOWAS Common External Tariff and was changed by the 2026 Fiscal Policy Measures (which started on July 1 2026) the fees are as follows:

1. Import duty – 20% The import duty on cars is 20%.

This is based on the cost, insurance and freight value of the vehicle. The cost, insurance and freight value is the price of the vehicle, the cost of its insurance and the cost of shipping it to Nigeria. The 20% import duty is one of the parts of the total cost of bringing a vehicle into Nigeria.

2. NAC levy - 5%

The National Automotive Council levy is currently 5% of the cost, insurance and freight value. For cars the rate dropped from 15% to 5% starting on July 1 2026. For cars the rate dropped from 20% to 10%. Importers need to know if the car is new or used when figuring out the NAC levy.

3. Green tax - 0%, 2% or 4%

The Green Tax is a fee that started in 2026. It depends on the size of the vehicles engine. Cars with engines below 2,000cc do not pay any Green Tax. Cars with engines between 2,000cc and 3,999cc pay 2%. Cars with engines of 4,000cc or more pay 4%. Some types are not charged.

These include cars, buses for public transport and cars made in Nigeria.

2. NAC levy - 5%

The National Automotive Council levy is currently 5% of the cost, insurance and freight value. For cars the rate dropped from 15% to 5% starting on July 1 2026. For cars the rate dropped from 20% to 10%. Importers need to know if the car is new or used when figuring out the NAC levy.

3. Green tax - 0%, 2% or 4%

The Green Tax is a fee that started in 2026. It depends on the size of the vehicles engine. Cars with engines below 2,000cc do not pay any Green Tax. Cars with engines between 2,000cc and 3,999cc pay 2%. Cars with engines of 4,000cc or more pay 4%. Some types are not charged.

These include cars, buses for public transport and cars made in Nigeria.

4. Surcharge - 7%

A 7% surcharge applies to imported cars. Unlike fees this surcharge is based only on the amount of import duty not directly on the cost, insurance and freight value. This is important because ap-plying the 7% surcharge to the cost, insurance and freight value would give a number and could lead to an incorrect estimate of the total cost.
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5. ETLS levy – 0.5%

The ECOWAS Trade Liberalisation Scheme levy is 0.5% of the cost, insurance and freight value. This fee is part of the ECOWAS Trade Liberalisation Scheme, which helps trade between mem-ber countries. Importers need to include the 0.5% charge in their cost when it applies.

6. CISS/FOB levy – 1% CISS or 4%

FOB Another fee to consider is the Comprehensive Import Supervision Scheme levy, which can be 1% CISS or 4% FOB. The charge depends on whether it's based on the Free on Board value or the cost, insurance and freight value.

This charge is based on the Free on Board value of the cost, insurance and freight value. However, the way this charge is applied has been inconsistent since 2025. Importers should check with their clearing agent to make sure they know the charge.

7. VAT-7.5%

The Value Added Tax in Nigeria is 7.5%. Importantly, this tax is not just on the cost, insurance and freight value. It is on the cost, insurance and freight value plus all other fees added together.

That means the VAT is calculated after adding the import duty, levies and other charges. As a result, the final VAT amount can be higher than expected if it is only calculated on the cost, insurance and freight value.

What this means for vehicle importers

The many fees explain why the price printed on a car does not match the cost, in Nigeria. Import duty, levies, Green Tax, surcharge and VAT can all add a lot to what the importer ends up paying.

Since some fees depend on the car type, engine size or current rules importers should check the rates and fees before finishing their cost estimates.

Customs confirms FG's import duty slash

Earlier, Legit.ng reported that the federal government's recent decision to reduce import duties on both used and brand-new vehicles is a move set to ease the financial burden on Nigerians grappling with skyrocketing car prices.

As millions of struggling citizens await the tangible impact of this policy, questions loom over whether it will effectively deter importers from diverting cargo to neighbouring ports amid ongoing fiscal challenges.