Importing a car into Nigeria is a major financial decision. The total cost goes beyond the car’s price. You also have to consider import duty, clearing fees, and other charges. If you’re not careful, you could pay more than you expected. That’s why many people look for guidance before bringing in a vehicle. Understanding car import duty in Nigeria helps you avoid surprises at the port.
This is where reliable services like Yusuf Babatunde Jimoh’s freight forwarding and clearing business come in. With years of experience and a solid track record, Yusuf helps clients clear their vehicles quickly and legally. His process is simple, fast, and stress-free. If you need help importing or clearing a car, reach out to Yusuf at +2348052803653 or 09039743395 or email [email protected].
In this guide, we’ll break down what car import duty is, how much it costs, and how to calculate it. We’ll also look at current tariffs, clearance fees, and the best countries to import from. Whether you’re new to importing or already in the business, this will help you stay informed.
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What Is The Import Duty On Cars In Nigeria?
Import duty is a tax placed on goods brought into Nigeria. For cars, this duty is part of what you must pay before the vehicle is cleared. The Nigerian Customs Service (NCS) sets these rates. They use factors like the age, brand, model, and type of vehicle to determine how much duty you’ll pay.
For most passenger cars, the import duty is 20 percent of the car’s value. But that’s not all. You’ll also pay a levy of 15 percent for used vehicles. So, if you’re bringing in a used car, you’re already looking at 35 percent in charges before anything else. For brand new vehicles, the levy might not apply, but the 20 percent duty still does.
These fees are calculated using what is called the Customs Value. This value might not match your invoice. The NCS uses its own valuation guide. For example, if Customs values your car at ₦5 million, your import duty would be ₦1 million. Add the 15 percent levy, and you’re now paying a total of ₦1.75 million just in government charges.
Knowing this helps you plan better. If you guess or depend only on the seller’s invoice, you could get stuck at the port.
What Is The New Tariff On Imported Cars In Nigeria?
In recent years, Nigeria has made changes to car import tariffs. The government introduced lower tariffs for certain types of vehicles to encourage affordable transportation. As of now, brand new vehicles attract 20 percent import duty and no levy. Used vehicles, however, still attract both 20 percent duty and 15 percent levy, totaling 35 percent.
These changes mostly affect commercial transporters and those importing electric or hybrid vehicles. The goal is to reduce the cost of buying newer, more efficient vehicles. But many Nigerians still bring in used vehicles from the US, Canada, and Europe. For these, the older 35 percent rate still applies.
Some vehicles fall under different categories. For example, buses for public transport may be charged just 10 percent. Tractors or farming vehicles may also be exempt from some duties. To know where your vehicle fits, you need to understand Nigeria’s HS Code system. This is another reason why using a trusted clearing agent is important. A mistake in classification can cost you millions.
Understanding the new tariff is key. You don’t want to budget based on the wrong duty rates and get hit with higher fees at the port.
Which Country Is Best To Import Cars To Nigeria?
Many Nigerians prefer to import cars from the United States. The main reason is cost. Cars in the US are usually cheaper, especially at auctions. You can get clean title vehicles or salvage cars at good prices. These cars also come with detailed history reports like Carfax.
Canada is another good option. The exchange rate between the naira and Canadian dollar is slightly better. Also, many Canadian cars are in better condition because of strict road laws. However, they often come with rust due to snow and salt on roads.
Europe is known for strong brands like BMW, Mercedes, and Volkswagen. Cars from Europe may have higher mileage, but they are usually built for tough conditions. Importing from Germany or the Netherlands can be easier due to better shipping links.
The United Arab Emirates (UAE), especially Dubai, is also gaining popularity. Cars here are mostly well-kept. Plus, Dubai’s proximity to Nigeria makes shipping cheaper and faster.
The best country depends on what you need. For low-cost sedans, the US is ideal. For luxury cars, go with Dubai or Germany. If you want fuel-efficient and compact cars, Japan is also worth considering.
How Much Is The Custom Clearance Fee In Nigeria?
Custom clearance fee refers to the money you pay to process your car through the port. This fee includes duties, levies, port charges, and agent fees. It’s one of the most confusing parts of importing a car.
To break it down:
- Import duty: 20 percent
- Levy (on used cars): 15 percent
- Port charges: ₦100,000 to ₦250,000
- Terminal handling: ₦25,000 to ₦50,000
- Agent fees: ₦50,000 to ₦150,000
So, clearing a car worth ₦5 million could cost you up to ₦2 million or more, depending on the car and agent. Some agents offer package deals, but these often come with extra charges later.
The cost also depends on the port. Clearing at Lagos ports like Apapa or Tin Can is more expensive. But it’s faster and has more shipping options. Ports like Onne or Warri may charge less, but are slower and less connected.
Always ask for a breakdown from your clearing agent. Avoid agents who only give rough estimates. Make sure your vehicle has no import ban, debt, or compliance issues.
How To Calculate Import Duty In Nigeria?
To calculate import duty, you need to know the Customs Value of your car. This is not the amount you bought the car for. It’s the value assigned by the Nigerian Customs Service using their own database.
Here’s a simple formula:
Customs Value × Duty Rate
If your car’s Customs Value is ₦6 million, and it’s a used car:
- Import duty (20 percent) = ₦1.2 million
- Levy (15 percent) = ₦900,000
- Total = ₦2.1 million
This does not include other fees like VAT or clearing agent charges. It’s just the duty and levy. Some cars like buses or trucks may have different rates.
Always check the latest rates from Customs or work with a licensed clearing agent. Many car buyers make the mistake of budgeting based only on the car’s market price.
With a reliable agent like Yusuf Babatunde Jimoh, you can get an accurate quote before shipping your car. This prevents delays and unnecessary port charges.
How Much Is A Clearance Fee?
Clearance fee is the total sum paid to clear your car from the port. It includes import duty, levy, terminal fees, inspection, and agent commission.
There’s no fixed amount. It depends on:
- The type of car
- Its age
- Where it was imported from
- The port used
- Current exchange rates
For example, clearing a Toyota Corolla 2010 might cost about ₦1.2 to ₦1.5 million. But a Lexus RX 350 could cost ₦2.5 to ₦3 million or more.
The older or more luxurious the car, the higher the clearance fee. Cars from accident auctions may be cheaper to buy, but they sometimes attract more scrutiny and delays during clearing.
Using a clearing agent is not optional. The process is technical and full of rules. Trying to do it yourself could lead to long delays and penalties.
How Much Is Import Charges In Nigeria?
Import charges go beyond just the duty and levy. They include several payments made at different stages. Here’s what to expect:
- Duty: 20 percent of car value
- Levy: 15 percent for used cars
- Value Added Tax (VAT): 7.5 percent
- ECOWAS fee: ₦600
- Processing fee: ₦1,000
- Shipping company charges: Varies
- Terminal handling: ₦25,000 to ₦50,000
When added together, import charges can add 35 to 50 percent to the car’s value. If you’re importing a ₦10 million car, prepare to pay up to ₦5 million in total charges.
You must factor all this into your budget before you make a purchase abroad. It’s one thing to get a good deal overseas. It’s another thing to bring the car home successfully.
This is where experienced agents like Yusuf Babatunde Jimoh are helpful. They give you the full picture so you don’t get stuck at the port.
How To Calculate Custom Duty?
Custom duty is calculated based on the car’s Customs Value. Here’s a short step-by-step:
- Find out the Customs Value from your agent.
- Multiply that value by the duty rate (usually 20 percent).
- If it’s a used car, add 15 percent levy.
- Add VAT of 7.5 percent on top of everything.
- Include handling, terminal, and other fixed charges.
Let’s say your car is valued at ₦4 million:
- Duty: ₦800,000
- Levy: ₦600,000
- VAT: ₦105,000
- Total charges = ₦1.5 million or more
Always calculate before shipping. Don’t assume the process is simple. Mistakes in calculation can delay clearance and increase your bill.
Conclusion
Car import duty in Nigeria is not cheap, but it can be managed with the right information. You need to understand Customs rules, how charges work, and how to calculate fees correctly. Many buyers make the mistake of focusing only on the car’s price. But the real cost includes duties, levies, and other port charges.
The smart move is to work with someone who knows the system. Yusuf Babatunde Jimoh offers freight forwarding and clearing services that take the stress off your shoulders. Whether you’re importing one car or a fleet, Yusuf will guide you through every step. Call him today at +2348052803653 or 09039743395 or email [email protected].
Save time, avoid extra fees, and get your car delivered clean. Use someone who delivers real results.
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