The Federal Government’s decision to reduce vehicle tariffs may have lowered the cost of importing cars into Nigeria, but industry operators say the move alone may not be enough to make Lagos ports the preferred destination for vehicle imports. Importers continue to face high clearance costs, port delays, storage charges and other logistics expenses that can quickly wipe out the savings from lower customs duties.
Under the 2026 Fiscal Policy Measures, the effective tariff on fully built passenger vehicles, four-wheel-drive vehicles and station wagons was reduced from 70% to 40%, effective April 1. The government also reduced the import levy on new vehicles from 20% to 10% and on used vehicles from 15% to 5%, effective July 1. While the changes are expected to reduce the landed cost of vehicles, importers say the real test will be whether Lagos ports can offer a faster and more predictable clearance process.
Clearing agent Gbenga Omotosho said importers consider the total cost of getting a vehicle from the ship to the Nigerian market, rather than looking at customs duty alone. Storage, terminal handling, demurrage, agent fees and transportation can all add significantly to the final cost. Car importer Okechukwu Ibe similarly noted that lower customs charges would not automatically make Lagos more competitive if other port and logistics costs continue to erase the savings. He said improving the efficiency of Lagos ports would be critical if the government wants to discourage importers from routing vehicles through Cotonou.
Port efficiency remains one of the biggest challenges. Association of Motor Dealers of Nigeria National President Ajibola Adedoyin identified high clearing charges, bottlenecks and lengthy processing times as key factors influencing importers’ decisions. Nigeria’s port dwell time has also remained significantly higher than in some neighbouring countries. Vice President Kashim Shettima recently said cargo spends an average of 18 to 21 days at Nigeria’s major ports, compared with five to seven days in Ghana and about four days at Cotonou. For importers, every extra day can translate into additional storage, financing and other costs.
Despite the challenges, the tariff cuts could still make Nigerian ports more attractive if they are matched with meaningful improvements in port operations. The Lagos Port Complex has road, water and rail connections and five private terminals, giving it significant infrastructure advantages. Vehicle imports into Nigeria also rose by 18.3% year-on-year in the second quarter of 2026, according to the Nigerian Ports Authority. However, importers say lower tariffs will have a stronger impact only when clearance becomes faster, charges become more predictable and overall logistics costs fall. Until then, cheaper statutory duties alone may not be enough to bring a significant share of vehicle imports back to Lagos.
source: nairametrics
