Twenty-eight days after the Federal Government slashed Customs duty on imported vehicles, prices of vehicles have not gone down in many motor dealers shops.

Recall that the government, with effect from July 1, slashed Customs duty on used vehicles (Tokunbo) from 15 percent to five percent, while new vehicles fell from 20 percent to 10 percent, and fully built passenger cars decreased from 70 percent to 40 percent.

However, findings by the Nigerian Tribune revealed that Nigerians are yet to benefit from this duty slash as many motor dealers still sell vehicles at old rates.

When confronted, the national president of the Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, explained that it would take some time before the new duty slash will reflect in prices due to the backlog of vehicles that arrived prior to the duty slash by the government.

Adedoyin said: “Nigerians need to understand that vehicles are not tomatoes, and so policy that affects vehicle duty slash takes time to reflect because it can take up to six months or more for a dealer to sell a vehicle he brought into the country in May 2026.

According to him, “Vehicle dealers are in business to make profit. While a few might be charitable to sell their vehicles at prevailing rates induced by the Customs duty slash, there is no law compelling others to do so.

“Don’t forget the Customs duty slash took effect from July 1, 2026. Some importers already made vehicle orders before then. Some vehicles arrived Nigerian ports before July, and sometimes, it takes six months minimum to sell a vehicle in Nigeria.”

“The major reason the duty slash has not reflected in prices of vehicles is due to the fact that many vehicles currently on display arrived before the Federal Government Customs duty slash began.”

When asked how soon Nigerians should expect to start enjoying lower car rates, the AMDON President stated, “Vehicles prices will soon start coming down, but not significantly.

“When we did our calculations based on the Customs duty that was slashed and the two percent Green Tax that was introduced, what vehicle importers have is an eight percent relief.

“When you add other operating expenses, you will realise that the eight percent is not much, though it is a relief for us.”

“So, we expect the cost of vehicles to come down slightly over a period of three to five months, but not significantly.”

Also speaking, a clearing agent who deals mainly in vehicle imports, Mr Basil Nwankwo, explained that over time, demand and supply matrix will force vehicle prices down based on the Customs duty slash.

“When many vehicles arrive between July, August and September at lower rates due to the reduced Customs duty, such vehicles will start competing with the old stock as regards pricing.

“Over a period of three to four months, prices of vehicles will go down because of the Customs duty slash. If the reduced duty rate is sustained, vehicle prices will go further down.

“But definitely not now. It’s still early days and the number of old stock still outweighs new arrivals. When many vehicles arrive in the coming months and are cleared based on the new duty rate, cost of vehicles will come down,” the clearing agent told the Nigerian Tribune. (Nigerian Tribune)