FG Reduces NAC Levy on Imported Vehicles to Lower Prices

The Federal Government of Nigeria has approved a significant reduction in the National Automotive Council (NAC) levy on imported vehicles to alleviate the financial burden on consumers and vehicle import dealers. The new levy rates are set at 10% for brand new vehicles, down from the previous 20%, and 5% for used vehicles, reduced from 15%.

This policy is expected to lower the overall cost of automobiles across Nigeria, particularly at a time when exchange rates and transport costs have increased vehicle prices significantly. Stakeholders in the automotive industry believe this reduction will provide relief to millions of Nigerians struggling with high automobile costs.

The NAC levy reduction is part of the government's broader effort to support the development of Nigeria's automotive industry and encourage local vehicle assembly. However, stakeholders have called for a review of the levy, citing economic conditions that have made vehicle ownership increasingly difficult.

The government anticipates that this decision will stimulate the automotive market and potentially create jobs within the automotive value chain.