Nigeria Customs 4% FOB Levy, VIN valuation sparks outrage among importers as car prices soar

The reintroduction of the Vehicle Identification Number (VIN) valuation system by the Nigeria Customs Service, along with the addition of a 4% Free on Board (FOB) levy, has sparked outrage among car importers in Nigeria. This has led to a sharp increase in the cost of clearing foreign-used vehicles at the nation's ports.

Importers and clearing agents have expressed concerns over the additional financial burden, which is expected to be passed on to consumers in the form of higher vehicle prices. The VIN valuation system, briefly suspended but now back in effect, has removed negotiation flexibility and added to the already high clearing costs borne by importers.

The uncertainty surrounding valuation and the significant rise in costs are likely to impact the volume of foreign-used vehicle imports in Nigeria in the coming months, potentially making car ownership more expensive for Nigerians.