What Are Import Duties and How Are They Calculated in Nigeria?
Import duty is often the largest single cost after the goods themselves. Yet many importers only discover the real figure when their PAAR or assessment arrives. If you want to know what import duties are and how they are calculated in Nigeria, this guide explains each charge, shows a worked example and highlights what has changed in 2026.
Key takeaways
- Nigerian import duty is charged on CIF value at CET rates of 0–35%, depending on the HS code.
- A 7% surcharge on duty, a 0.5% ETLS levy, a 1% CISS charge and 7.5% VAT are commonly added.
- A 10% duty rate can mean total taxes of about 20% of CIF.
- The 2026 Fiscal Policy Measures revised 127 tariff lines, so check current rates.
What are import duties?
Import duties are taxes charged by a government on goods brought into the country. In Nigeria, they are assessed and collected by the Nigeria Customs Service. They:
- Raise government revenue.
- Protect local industries.
- Support trade policy, including ECOWAS regional integration.
Import duty is only one part of the bill. Levies and VAT are added on top.
Step 1: Find the correct HS code
Every product is classified under the Harmonized System (HS), a global product coding system maintained by the World Customs Organization. Nigeria applies the ECOWAS Common External Tariff (CET), which sets duty rates by HS code.
The HS code determines:
- The import duty rate.
- Whether other levies or excise apply.
- Whether permits are needed.
- Whether the item is restricted or prohibited.
Classification is where many costly errors start.
Step 2: Determine the customs value (CIF)
Nigeria calculates import duty on the CIF value:
CIF = Cost of goods + Insurance + Freight (to the Nigerian port of entry)
If you bought on FOB or EXW terms, Customs adds freight and insurance to reach CIF. Values in foreign currency are converted to naira at the exchange rate Customs applies at assessment. A weaker naira means higher duty in naira terms, even if the dollar price has not changed.
Customs uses transaction value where acceptable, but compares declarations with reference values. Undervaluation leads to reassessment and penalties.
Step 3: Apply the duty and levy stack
| Charge | Common rate | Calculated on |
|---|---|---|
| Import duty (CET) | 0%, 5%, 10%, 20% | CIF value |
| or 35% | ||
| Surcharge | 7% | Import duty amount |
| ETLS (ECOWAS Trade Liberalisation | 0.5% | CIF value (non-ECOWAS goods) |
| Scheme levy) | ||
| CISS (Comprehensive Import | 1% | FOB value |
| Supervision Scheme) | ||
| VAT | 7.5% | CIF + duty + surcharge + levies |
| Other (product-specific) | Varies | e.g. NAC levy on vehicles, excise, green tax |
| on some vehicles |
Important 2025–2026 changes to watch
- 4% FOB charge: Nigeria Customs introduced a 4% FOB-based collection charge in 2025, intended to replace some existing charges. It was suspended, reinstated and suspended again amid stakeholder concerns. Always confirm whether it applies on your assessment.
- 2026 Fiscal Policy Measures: signed on 1 April 2026, revising 127 tariff lines across food products, industrial inputs, capital equipment and vehicles, with new excise and green tax measures effective from 1 July 2026.
- VAT: remains 7.5% under Nigeria's 2025 tax reform laws.
Because rates and levies change, always check your PAAR and current tariff before budgeting.
Worked example: calculating import duty
A Lagos business imports industrial equipment with:
- FOB value: US$18,000
- Freight: US$1,700
- Insurance: US$300
- CIF: US$20,000
- Duty rate: 10%
| Charge | Calculation | Amount (US$) |
|---|---|---|
| Import duty | 10% × 20,000 | 2,000 |
| Surcharge | 7% × 2,000 | 140 |
| ETLS | 0.5% × 20,000 | 100 |
| CISS | 1% × 18,000 | 180 |
| VAT base | 20,000 + 2,000 + 140 + 100 + 180 | 22,420 |
| VAT | 7.5% × 22,420 | 1,681.50 |
| Total duties and taxes | 4,101.50 |
That is about 20.5% of CIF, double the headline 10% duty rate. This "stacking effect" is why importers underestimate customs costs. The naira amount will depend on the exchange rate applied on the day.
This example is for illustration only. Actual assessments depend on current rates, levies and Customs' valuation.
Duty rate bands: what falls where?
The ECOWAS CET groups goods into broad bands. As a general guide:
- 0%, essential social goods, such as certain medicines, books and some capital equipment.
- 5%, raw materials and some basic inputs.
- 10%, intermediate goods and some industrial inputs.
- 20%, finished consumer goods.
- 35%, goods in sectors the government wants to protect or develop locally.
These are broad categories only. Your exact rate depends on the specific tariff line, and national fiscal policy measures can adjust individual lines.
How duty is paid
Once your declaration is assessed, duty is paid electronically through designated banks or payment channels linked to the Customs platform. Under B'Odogwu, assessment, payment confirmation and release steps are increasingly connected, which reduces manual processes. Pay promptly: time between assessment and payment still counts toward storage and demurrage days.
Why your duty might be higher than expected
- Wrong HS code used in budgeting.
- Valuation uplift, Customs rejects your declared value.
- Exchange rate movements between order and assessment.
- Additional levies or excise on certain goods.
- Policy changes mid-shipment.
- Debit notes after post-clearance review.
Can import duty be reduced legally?
Yes, through legitimate routes:
- Correct classification, sometimes a more accurate HS code carries a lower rate.
- Duty exemptions or waivers, for approved projects, sectors or government-incentive schemes.
- ECOWAS origin benefits, for qualifying goods under ETLS.
- Import duty concessions for specific industries, such as some manufacturing inputs.
- Bonded warehousing, deferring duty until goods are released for local use.
Never under-declare value or misdescribe goods. See how to avoid customs delays and penalties.
Import duty vs total landed cost
Duty is just one piece. Your full landed cost includes freight, port charges, clearing, delivery and financing. Read how to calculate your total landed cost.
Frequently asked questions
Is import duty in Nigeria calculated on FOB or CIF?
Import duty is calculated on CIF value. Some levies, such as CISS, are based on FOB.
What is the VAT rate on imports in Nigeria?
7.5%, charged on the CIF value plus duty and other charges.
Where can I check Nigeria's import duty rates?
On the Nigeria Customs Service tariff resources, or through a licensed customs agent.
Does the exchange rate affect import duty?
Yes. Duty is paid in naira based on the exchange rate Customs applies at assessment.
Know your duty before you ship
DE-BLINGS confirms HS codes and estimates duties before your goods leave origin, so your budget matches your assessment. Explore our customs clearance service or get a free quote today.
