The Federal Government has commenced nationwide collection of the Green Tax on vehicles, an environmental levy targeted at petrol, diesel and other internal combustion engine vehicle owners, effective July 1, 2026.
The levy, introduced under the National Green Tax Policy, forms part of government efforts to promote environmental sustainability and cut carbon emissions across the country, according to reports by Tax Advocate.
The tax is payable annually by vehicle owners during registration and renewal processes, with the amount payable varying according to the type and category of vehicle.
Collection will be handled by the Nigeria Customs Service alongside relevant State Boards of Internal Revenue and vehicle licensing authorities, working in collaboration with the Federal Government depending on the state of registration.
Electric vehicles are generally exempt from the levy.
The Federal Government said proceeds from the Green Tax would be channelled into environmental protection initiatives, cleaner transportation policies and other climate-related programmes nationwide.
Ogbeni Olawale Dawodu
