Nigeria Passes Green Tax Targeting Vehicles With Bigger Engines

Nigeria is imposing a new levy for buyers of heavy-engine vehicles, including SUVs and trucks, in a move designed to price in the cost of pollution, encourage electric-vehicle adoption and boost tax revenue.

Africa’s most populous nation has introduced a 4% surtax - on top of standard import duties - for vehicles with engine sizes of 4,000 cubic centimeters and above, and 2% on those between 2,000 and 3,999 cc, according to an April 1 memo confirmed by Finance Minister Wale Edun to Bloomberg Wednesday.