Import Duty & Customs Clearance in Nigeria: Real Costs, Levies & Step-by-Step Process (2026 Guide)

If you’re importing goods into Nigeria, understanding the real cost beyond the invoice price is critical. From import duty and VAT to levies like ETLS and the new 4% FOB charge, landing costs can add 50% or more to your shipment.

This guide breaks down Nigeria’s customs duty structure, clearance process, prohibited items, and real-world ₦ examples—so you can budget accurately and avoid penalties. Whether you’re a first-time importer or a seasoned logistics manager, you’ll find actionable insights aligned with the Nigeria Customs Service (NCS) and ECOWAS Common External Tariff (CET).

Nigeria’s Import Duty Structure: The 5 CET Bands

Nigeria operates under the ECOWAS Common External Tariff (CET), which classifies imports into five duty bands based on the Harmonized System (HS) code.

For example, a brand-new car (HS code 8703) falls under Band 5 at 35%, while raw cotton (HS code 5201) is taxed at 5%.

Additional Levies & Surcharges

Beyond the base import duty, Nigeria applies several statutory levies that compound your total cost:

• Surcharge: 7% of the import duty amount
• ECOWAS Trade Liberalisation Scheme (ETLS): 0.5% of CIF value
• Comprehensive Import Supervision Scheme (CISS): Replaced by a unified 4% FOB levy (effective February 2025)
• Value Added Tax (VAT): 7.5% of (CIF + duty + surcharges + levies)

The 4% FOB levy consolidates the old 1% CISS and 7% cost-of-collection surcharge, simplifying assessment but increasing the duty base for many importers.

How to Calculate Import Duty in Nigeria: A Real ₦ Example

Let’s walk through a practical example. Suppose you’re importing electronics with a CIF value of ₦1,000,000. The HS code attracts a 20% import duty (Band 4).

Step-by-Step Calculation

1. Import Duty: 20% of ₦1,000,000 = ₦200,000
2. Surcharge: 7% of ₦200,000 = ₦14,000
3. ETLS: 0.5% of ₦1,000,000 = ₦5,000
4. 4% FOB Levy: Assume FOB = ₦900,000 → 4% of ₦900,000 = ₦36,000
5. VAT Base: ₦1,000,000 (CIF) + ₦200,000 (duty) + ₦14,000 (surcharge) + ₦5,000 (ETLS) + ₦36,000 (FOB levy) = ₦1,255,000
6. VAT: 7.5% of ₦1,255,000 = ₦94,125

Total Landing Cost: ₦1,000,000 (CIF) + ₦200,000 + ₦14,000 + ₦5,000 + ₦36,000 + ₦94,125 = ₦1,349,125

This means your effective tax burden is 34.9% of the CIF value—far higher than the headline 20% duty rate.

Pro Tip: Use ToolBase’s Import Duty Calculator to model different scenarios and HS codes before shipping.

Customs Clearance Process: Step-by-Step (2026)

Nigeria has transitioned to destination inspection, meaning goods are examined upon arrival—not before shipment. Here’s the official process:

1. Pre-Import Requirements

• Register your business with the Corporate Affairs Commission (CAC) and obtain a Tax Identification Number (TIN) from FIRS.
• Open a Form M on the Nigeria Single Window Trade Portal via an Authorized Dealer Bank (ADB), attaching:
  • Proforma Invoice (valid 90 days)
  • Marine Insurance Certificate (110% of invoice value)
  • Product Certificate (for SON-regulated goods)
  • NAFDAC permit (for food, drugs, cosmetics)

2. SONCAP & PAAR Issuance

• SONCAP Certificate: Issued by Cotecna after verifying the Form M and final invoice.
• PAAR (Pre-Arrival Assessment Report): Generated on the Single Window before goods arrive. Without PAAR, NCS will hold your shipment.

3. Arrival & Examination

• Terminal Operator: Positions your container for scanning and physical examination.
• NCS Assessment: Uses PAAR to determine duty payable.
• Payment: Pay via Remita or authorized bank; obtain receipt.

4. Release & Gate Pass

• Endorsement: Submit documents for NCS endorsement.
• Terminal Gate Pass: Collect from shipping line to exit the port.

The entire process can take 20+ days due to 100% cargo examinations and bureaucratic delays.

Prohibited & Restricted Imports in Nigeria

Nigeria prohibits 25+ product categories to protect local industries and public health.

Absolutely Prohibited Items

• Live or dead birds (including frozen poultry)
• Beef and pork
• Refined vegetable oils
• Bagged cement
• Used vehicles older than 12 years
• Textile fabrics, footwear, and furniture (in retail packs)

Restricted Items (Require Permits)

• Pharmaceuticals (NAFDAC + NDLEA clearance)
• Agricultural seeds (NAQS permit)
• Telecom equipment (NCC type approval)
• Petroleum products (DPR permit)

Attempting to import prohibited goods results in seizure, fines, and potential blacklisting.

Hidden Costs & Penalties to Avoid

Beyond statutory duties, importers face operational costs that can derail budgets:

• Demurrage: Charged by terminal operators for delayed container pickup (₦50,000–₦200,000/day).
• Storage Fees: Accrue after 7 days of free storage at ports.
• Clearing Agent Fees: $200–$500 per shipment or 1–3% of CIF value.
• Informal “Facilitation” Payments: While illegal, some importers report bribes of $10,000 per container to expedite clearance.

The Nigeria Customs Service increased clearing agent licensing fees in January 2026:

• Renewal: ₦215,000 → ₦4,000,000
• Fresh License: ₦515,000 → ₦10,000,000
  This may raise agent service charges by 20–50%.

2026 Fiscal Policy Changes: What’s New?

The Federal Government’s 2026 fiscal policy introduced key reforms:

• Vehicle Duty Reduction: Used vehicles (tokunbo) duty slashed from 15% to 5%; new cars from 20% to 10%.
• Agricultural IAT Waiver: Import Adjustment Tax (IAT) reduced to 0% for unlisted agricultural items by April 1, 2026 (90-day grace period).
• Unified 4% FOB Levy: Replaces CISS and cost-of-collection surcharge, effective February 2025.

These changes aim to lower food prices and boost local manufacturing but may increase costs for raw material importers.

Real-World Case Study: Importing a Generator

Let’s say you’re importing a 50kVA generator (HS code 8502) with CIF ₦5,000,000.

Effective tax rate: 23.5% of CIF.

Tool Integration: Use ToolBase’s Landing Cost Calculator to model your shipment’s total cost before committing funds.

FAQs: Import Duty & Customs in Nigeria

How do I find my product’s HS code?

Use the Nigeria Trade Information Portal’s Tariff Search Tool to look up HS codes and applicable duty rates.

Can I import used vehicles into Nigeria?

Yes, but only if they’re less than 12 years old. Duty is now 5% (down from 15% in 2026).

What happens if I don’t get PAAR before arrival?

Your goods will be held at the port until PAAR is issued, incurring demurrage and storage fees.

Are there duty exemptions?

Yes. Capital equipment, medicines, and agricultural inputs often qualify for 0% duty under Band 1. Check the CET schedule or consult NCS.

Final Thoughts: Budget for the Real Cost

Importing into Nigeria is profitable—but only if you account for the full landing cost. Duty, VAT, levies, and operational fees can add 35–80% to your invoice value.

By understanding the CET bands, clearance process, and 2026 policy changes, you can avoid surprises and keep your supply chain moving. Always verify HS codes, secure PAAR early, and use ToolBase’s calculators to model costs before shipping.

Disclaimer: This article is for educational purposes only and does not constitute professional advice. Consult a qualified customs broker or tax professional for your specific situation.

Last Updated: September 26, 2026