Clearing agents kick over FG’s green tax surcharge on imported vehicles

Clearing agents under the aegis of the Association of Nigerian Licensed Customs Agents (ANLCA) on Monday called on the Federal Government to immediately suspend the implementation of its Green Tax Policy scheduled to commence on July 1, citing inadequate stakeholder consultation, insufficient notice, and the potential negative impact on importers, licensed customs agents, and the nation’s trading community.

Recall that the Federal Government, through the Nigeria Customs Service (NCS), is introducing a new Green Tax Surcharge, effective July 1, 2026, which imposes a 2 percent to 4 percent levy on imported vehicles with high-emission engines, alongside targeted reductions on standard duties.

In a statement signed on Monday by ANLCA National President, Emenike Nwokeoji, the association said it was surprised and embarrassed that a fiscal policy of such far-reaching implications on import duty, cargo valuation, contractual obligations, shipping arrangements, and business planning was communicated to only a section of the critical trading community in Lagos barely 72 hours before its proposed implementation.

ALSO READ: Osun 2026: I’m running for repositioning, not for personal ambition — APGA candidate

The association noted that while it was not opposed to the government’s authority to formulate fiscal policies, such an approach, leading to the policy’s implementation, is insensitive and procedurally defective.

According to the ANLCA statement, “Even more astonishing was the extremely late invitation extended to stakeholders for the consultation meeting.

“Such an approach is insensitive, procedurally defective, and inconsistent with the principles of fairness, inclusiveness, stakeholder engagement, and due consultation that should ordinarily guide the implementation of major public policies.

“Fiscal policies of this magnitude ought to be preceded by adequate notice, extensive consultations with all relevant stakeholders across the country, comprehensive sensitisation, and sufficient transitional periods to ensure seamless compliance.

“Anything short of this undermines confidence in government policies, exposes legitimate businesses to avoidable financial losses, and ultimately erodes the confidence of both local and foreign investors in Nigeria’s trade environment.”

The association also faulted the decision to apply the Green Tax to shipments already in transit to Nigeria, arguing that such a move amounts to a retrospective fiscal burden on importers and licensed customs agents who had entered into binding commercial contracts under the existing tariff regime.

“Such a development will inevitably result in severe financial losses and unnecessary disputes within the international trading community.

“Furthermore, the stakeholders’ meeting failed to adequately address critical implementation issues. For instance, there was no clear methodology provided for determining engine capacities for the purpose of Green Tax assessment.

“This ambiguity is capable of creating confusion, inconsistent assessments, avoidable disputes, and ultimately leaving the trading public at the discretion of individual assessment officers,” it said.

The association urged the Federal Government to suspend the implementation of the policy pending wider consultations across the country.

It also called for the publication of detailed implementation guidelines covering tax assessment methods, valuation parameters, and operational procedures.

In addition, ANLCA advocated comprehensive sensitisation of importers, licensed customs agents, freight forwarders, shipping companies, and other stakeholders, as well as the provision of a reasonable transition period to allow businesses to adjust existing contractual obligations and shipping arrangements.

The association reaffirmed its commitment to constructive engagement with the Federal Government and the Nigeria Customs Service to develop a practical implementation timeline and guidelines that would protect legitimate trade while aligning with international best practices.