Nigeria's Vehicle Tariff Cuts May Not Boost Lagos Imports

Nigeria has reduced the effective tariff on fully built passenger vehicles, Four Wheel Drive vehicles, and station wagons from 70% to 40% under its 2026 Fiscal Policy Measures, effective April 1, 2026. Additionally, the import levy on new vehicles has been cut from 20% to 10%, and on used vehicles from 15% to 5%, effective July 1.

However, industry operators, including Gbenga Omotosho, a clearing agent at Apapa Port, and Okechukwu Ibe, a car importer, express concerns that high clearance costs, port bottlenecks, and lengthy processing times will deter importers from using Lagos ports. Ajibola Adedoyin, National President of the Association of Motor Dealers of Nigeria, noted that the competitiveness of Lagos ports depends on the total cost of bringing a vehicle into Nigeria, including customs charges, storage, and transportation costs.

Vice President Kashim Shettima stated that cargo dwell time at Nigeria’s major ports averages between 18 and 21 days, compared to five to seven days in Ghana and about four days at Cotonou, highlighting the need for faster clearance processes to make vehicle imports more attractive.