Nigeria's new Green Tax, effective July 1 2026, imposes a 2 to 4 percent levy on high-engine vehicles while exempting EVs and locally made vehicles. Manufacturers and industry experts warn the tax will raise production and logistics costs, worsen inflation, and hurt local competitiveness unless the government reinvests the revenue into renewable energy, recycling, and low-carbon technologies. The policy exempts EVs from import duty and reduces vehicle import levies by half, but stakeholders say affordable alternatives to carbon-intensive operations are still missing. Industry voices like David Etim of CALCCIMA and Imokhai Ehimigbai of MAN argue that without transparent reinvestment in solar power, biodegradable materials, and CNG conversion subsidies, the tax becomes a burden rather than a transition tool. SMEs expert Daniel Dickson-Okezie calls for a suspension and transition period, citing inadequate consultation and rising costs for machinery and logistics. The debate highlights a core tension in carbon pricing: taxing emissions without funding cleaner options risks economic pain without environmental gain.
