The absolute majority of cars on Nigerian roads are imported, but the cost of importing cars has changed several times over the years. Recently, the Federal Government has unveiled new import costs that are designed to make importing cars in Nigeria easier. Here is how much you will have to pay to import a car in 2021!
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1. How much did we pay before?
If you’ve cleared a used car in Nigeria in the past few years, you likely did it under the 2015 tariffs. According to those tariffs, importing a used car cost 70% of the price of the vehicle. 35% of that was the levy tax, and 35% of that was the import duty. So for example, buying a vehicle for ₦2.5 million meant you had to pay an additional fee of ₦1.75 million. This made the cost of imported cars very high, but it often was the only option to get the car you need in a decent condition.
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2. What is the 2021 tariff?
At the end of 2020, the Federal Government unveiled its plans to reduce the cost of importing used vehicles in Nigeria. This was done in order to make the process of importing cars easier and more affordable for an average buyer. The government lowered both tariffs: the levy tax went from 35% to just 5%, and the import duty decreased from 35% to 10% for cars and trucks and just 5% for tractors.
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The new import tariff was met with excitement from Nigerian drivers who can now clear cars at a far lower cost than before. However, there has also been some criticism surrounding the government’s decision. The critics claim that the lower import tariffs will encourage the importation of old vehicles that are bad for the environment. Still, most people in Nigeria were delighted by the news and praised the new importation costs.
3. The cost of importing a vehicle in Nigeria in 2021
Calculating the cost of an imported vehicle according to the new tariffs is actually pretty easy. Just take the cost of the vehicle before it’s imported and add 15% to its original price. For example, if your car of choice costs ₦2 million, you will end up paying ₦2 million + ₦300,000. It means that this year is a great opportunity to update your old car and get the vehicle you’ve always wanted now that the tariffs are lower than ever.
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