The automotive industry in Nigeria is still in its early development stages and there are very few cars produced and assembled in the country. As a result, many Nigerians prefer to import their new cars from overseas, which requires them to pay additional clearing costs. Find out how much it costs to clear a car in Nigeria in 2020!
1. Who Do You Have To Pay?
In most cases, you pay the clearing costs for your car in one lump sum, but this lump sum includes several payments to different entities responsible for the car importing process in Nigeria. When paying for your car to be cleared, you pay to the following legal entities:
- Clearing charges or agent fee
- The Nigerian Customs
- The shipping company or airline that delivered your car to the port or terminal
- The terminal where you will pick up your car
So while the cost of clearing a car in Nigeria may seem excessively high, you need to remember that the amount of your payment is distributed between different bodies and therefore may seem more justified.
2. How Clearing Costs Are Calculated
The cost of clearing a car in Nigeria has changed several times over the years. A couple of years ago, you had to pay 22% of the cost of the car to import it into Nigeria. Recently, however, this number has increased by 48%. So how much does it cost to clear a car in Nigeria right now?
The newest clearing fee consists of two smaller fees. When importing a car to Nigeria, you need to pay 35% of the car cost as a duty plus a 35% levy. As a result, the cost of clearing a car in 2020 is 70% of the cost of the car, which can definitely take a toll on your buying budget.
3. Clearing Costs 2020 Examples
Before the new import tariffs were accepted, the cost of clearing a car was calculated based on different factors, including the year when the vehicle was manufactured and its size and weight. Today, however, the main factor determining the cost of clearing the car is the price of the vehicle that is being imported.
It means that in order to know how much you’ll need to pay to get the car imported into Nigeria, you need to know the exact cost of the car. Here are some examples of vehicles that can be imported to Nigeria, their price, and the cost of clearing them:
- Kia Optima 2012: ₦1,700,000 (price) + ₦1,190,000 (clearance fee)
- Toyota 4Runner 1994: ₦650,000 (price) + ₦455,000 (clearance fee)
- Land Rover Sport 2006: ₦2,150,000 (price) + ₦1,500,000 (clearance fee)
- Acura MDX 2007: ₦1,000,000 (price) + ₦700,000 (clearance fee)
- Toyota Corolla 2003: ₦500,000 (price) + ₦350,000 (clearance fee)
With more than half of your car price being added to your expenses as a clearance fee, the overall cost of a car imported to Nigeria can get very high. If you don’t want to pay extra for being able to drive a good car, you can look for your new ride on Jiji, where you will find thousands of car for any budget in every part of the country.
Culled from Jiji Blog