-
Ikiodiete George
- 3 Min Read
Ways To Easily Calculate Car And Vehicle Import Duty In Nigeria 2025: Total Cost Of Clearing Cars
If you’re planning to import a car into Nigeria in 2025, understanding how customs duties and clearing charges are calculated is essential. Nigeria’s vehicle clearing system can be complicated—import duties, NAC levy, VAT, and several hidden fees all add up fast.
This guide will break it down step-by-step and show you how to easily calculate the total clearing cost for any imported vehicle.
Step-by-Step Guide: How to Calculate Car Import Duty in Nigeria (2025)
Let’s start with the key components involved in the calculation:
1. Know the CIF Value of Your Car
CIF means Cost + Insurance + Freight—the total cost of purchasing the car, insuring it, and transporting it to Nigeria.
2. Apply Import Duty and NAC Levy
|
Charge |
Rate |
Applies To |
|
Import Duty |
20% |
All imported vehicles |
|
NAC Levy |
20% |
New vehicles |
|
NAC Levy |
15% |
Used (Tokunbo) vehicles |
Formula:
Import Duty = 20% of CIF
NAC Levy = 15% or 20% of CIF
3. Add VAT on CIF + Duty + NAC
VAT in Nigeria is 7.5%, and it’s applied on the sum of CIF + duty + NAC levy.
Formula:
VAT = 7.5% of (CIF + Import Duty + NAC Levy)
4. Add Processing and Port Charges
These are small charges but must be included:
|
Fee Type |
Estimated Rate |
|
Customs Processing Fee |
1% of CIF |
|
NPA Administrative Charge |
1% of CIF |
5. Add Clearing Agent & Terminal Charges
|
Additional Cost |
Range (₦) |
Notes |
|
Clearing Agent Fee |
₦50,000 – ₦150,000 |
Negotiable |
|
Terminal/Shipping Charges |
₦50,000 – ₦100,000 |
Based on port, method (RoRo/Container) |
Example: How to Calculate Total Clearing Cost for a Used Car in 2025
Let’s say you’re importing a 2015 Toyota Corolla with a CIF value of ₦4,000,000.
|
Component |
Calculation |
Amount (₦) |
|
CIF Value |
Given |
₦4,000,000 |
|
Import Duty (20%) |
20% of ₦4,000,000 |
₦800,000 |
|
NAC Levy (15%) |
15% of ₦4,000,000 |
₦600,000 |
|
Subtotal for VAT |
₦4M + ₦800k + ₦600k = ₦5.4M |
— |
|
VAT (7.5%) |
7.5% of ₦5,400,000 |
₦405,000 |
|
Customs & NPA Charges (2%) |
2% of ₦4,000,000 |
₦80,000 |
|
Clearing Agent + Terminal Fees |
Estimated |
₦150,000 |
|
Estimated Total Cost |
Sum of all the above |
₦2,035,000 |
Final clearing cost = ₦2.03 million (just to clear a ₦4M car)
Pro Tips for Accurate Calculation
- Use the VIN Valuation System (Nigeria Customs) to get accurate CIF values.
- Check the daily customs exchange rate, which affects how CIF is converted to Naira.
- Avoid demurrage by working with a fast and reliable clearing agent.
- Factor insurance & documentation fees if not already in CIF.
- Use RoRo (Roll-on/Roll-off) shipping for lower shipping costs than containerized options.
Summary Table of Charges (% of CIF)
|
Fee Category |
Used Cars |
New Cars |
|
Import Duty |
20% |
20% |
|
NAC Levy |
15% |
20% |
|
VAT |
7.5% |
7.5% |
|
Processing & NPA |
2% |
2% |
|
Approx. Clearing Rate |
~45%–50% |
~47%–52% |
Estimator: Clearing Cost by Car Price (2025)
|
CIF Value (₦) |
Estimated Total Clearing Cost |
|
₦3,000,000 |
₦1.3M – ₦1.5M |
|
₦5,000,000 |
₦2.2M – ₦2.5M |
|
₦8,000,000 |
₦3.5M – ₦4.2M |
|
₦12,000,000 |
₦5.2M – ₦6.5M |
How Exchange Rate Affects Your Clearing Cost
If the dollar-to-naira exchange rate is ₦1,500, a car valued at $5,000 CIF equals ₦7.5M. If the rate jumps to ₦1,600, CIF becomes ₦8M—meaning all taxes increase accordingly.
Always confirm the official customs exchange rate before shipping.
Conclusion: Budget Smart, Clear Fast
Importing a car into Nigeria requires more than just buying power—you need the math. With duties, levies, VAT, and port fees piling up, total clearing costs often reach 50% of your car's CIF value.
Whether you're bringing in a sedan or an SUV, follow this guide to calculate your duty correctly and avoid overpaying or delays at the port.
