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The short answer
Customs works out car import charges on the vehicle's assessed CIF value (cost, insurance and freight): import duty and the vehicle levy are percentages of CIF, a surcharge is a percentage of the duty, ETLS and CISS are small percentages, and VAT at 7.5% is charged on the CIF value plus all the other charges. Legit.ng reported in August 2026 a 20% duty, a 5% levy on used cars, a 7% surcharge on duty, 0.5% ETLS and 7.5% VAT, after rate cuts on 1 July 2026.
The idea behind the bill
An imported car's customs bill is a stack of separate lines, each calculated on its own base. Most people go wrong by applying one percentage to the purchase price. The starting point is not what you paid: it is the value Customs assigns to the car, and for most charges it is the CIF value, meaning cost plus insurance plus freight to the Nigerian port.
Customs fixes that value through its VIN valuation system rather than accepting the invoice on trust; see how VIN valuation works. Once the value is set, the lines below are applied.
The lines, as reported in 2026
Rates changed on 1 July 2026 under the 2026 Fiscal Policy Measures. Channels TV reported that Customs cut the levy on used vehicles from 15% to 5% and on new vehicles from 20% to 10%, with mass transit buses and electric vehicles fully exempt. Legit.ng's breakdown of 27 August 2026 set out the full stack:
| Line | Rate reported | Calculated on |
|---|---|---|
| Import duty | 20% | CIF value |
| Vehicle (NAC) levy | 5% used; 10% new | CIF value |
| Surcharge | 7% | The import duty, not CIF |
| ETLS (ECOWAS Trade Liberalisation Scheme levy) | 0.5% | CIF value |
| CISS or FOB levy | 1% CISS or 4% FOB levy | Legit.ng says application has been inconsistent since 2025 |
| Green Tax surcharge | 0% under 2,000cc; 2% for 2,000cc to 3,999cc; 4% for 4,000cc and above | Base not stated in reports |
| VAT | 7.5% | CIF plus all the other charges |
Worked example on a labelled value
Example only. A used saloon car with a 1,800cc engine, assessed at a CIF value of ₦10,000,000, using the rates Legit.ng reported in August 2026 and taking CISS at 1% of CIF for illustration. Below 2,000cc, no Green Tax applies.
| Line | Working | Amount |
|---|---|---|
| Import duty | 20% × ₦10,000,000 | ₦2,000,000 |
| Surcharge | 7% × ₦2,000,000 duty | ₦140,000 |
| Vehicle levy (used) | 5% × ₦10,000,000 | ₦500,000 |
| ETLS | 0.5% × ₦10,000,000 | ₦50,000 |
| CISS (illustrative) | 1% × ₦10,000,000 | ₦100,000 |
| Subtotal of charges before VAT | ₦2,790,000 | |
| VAT base | ₦10,000,000 + ₦2,790,000 | ₦12,790,000 |
| VAT | 7.5% × ₦12,790,000 | ₦959,250 |
| Total customs charges | ₦2,790,000 + ₦959,250 | ₦3,749,250 |
On these assumptions the customs charges come to about 37.5% of the assessed value. A 2,500cc car on the same value would add a Green Tax line, and if a 4% FOB levy were applied instead of 1% CISS the bill would be higher. Port terminal, shipping line and agent fees are separate and come on top; see a full tokunbo cost example.
Building the CIF value
CIF has three parts, and each one moves the bill. Cost is the value of the car itself, which Customs may set from its VIN database rather than your auction receipt. Insurance is the marine cover for the voyage. Freight is the shipping charge to the Nigerian port, whether roll-on roll-off or in a container. If a seller quotes you a price "delivered to Lagos", ask for the three parts separately, because Customs will want to see how the total was made up.
Example only. A car bought for the equivalent of ₦8,600,000, with ₦1,250,000 of freight and ₦150,000 of insurance, has a CIF value of ₦10,000,000, the figure used in the worked example above. If Customs' VIN value for the car itself came out at ₦9,600,000 instead, the CIF would be ₦11,000,000 and every percentage line would rise by a tenth.
Why your bill might differ
- The value. If Customs' VIN value is higher than your invoice, every line rises with it.
- New or used. The levy is 10% on new vehicles and 5% on used, per Channels TV.
- Engine size. The Green Tax surcharge only applies from 2,000cc upwards.
- Exemptions. Mass transit buses and electric vehicles were reported as fully exempt from 1 July 2026.
- Age. Used cars more than 12 years from manufacture are prohibited, not charged; see the age limit.
Steps before you ship
- Get the VIN and run it through the Customs valuation process through your agent.
- Ask the agent for a written breakdown line by line, with the base for each.
- Check the VAT is calculated on CIF plus the other lines, not double-counted.
- Budget separately for port, shipping line and agent fees.
- Keep every receipt; you need them if you later dispute the assessment.
Where Pryme fits
You often pay the seller abroad in a foreign currency and the duty at home in naira. A Pryme account holds NGN, USD, GBP and EUR with local account details for each, and Swap shows the rate first and the fee on its own line before you approve. See how multicurrency works.
Questions people ask
How much is duty on a tokunbo car in Nigeria?
It depends on the value Customs assigns. Legit.ng reported in August 2026 a 20% import duty and 5% levy on CIF for used cars, plus a 7% surcharge on the duty, 0.5% ETLS, CISS and 7.5% VAT on the total. In our ₦10 million example the charges came to ₦3,749,250.
Is car duty calculated on the price I paid?
No. Most lines are calculated on the CIF value Customs assigns, which includes insurance and freight, and Customs uses VIN valuation rather than relying only on your invoice.
Is VAT charged on the duty as well?
Yes. As Legit.ng describes it, VAT at 7.5% is charged on the CIF value plus all other duties and levies combined.
Did car import duty reduce in 2026?
Yes. Channels TV reported that from 1 July 2026 the levy on used vehicles fell from 15% to 5% and on new vehicles from 20% to 10%, under the 2026 Fiscal Policy Measures.
Sources
- Full breakdown of duties, taxes and levies Nigerians pay to import cars in 2026 (Legit.ng, 27 Aug 2026) · accessed Oct 2026
- FG reduces import levies on vehicles, Customs begins green tax implementation (Channels TV, 2 Jul 2026) · accessed Oct 2026
- Customs introduces identification number for valuation of imported vehicles (BusinessDay, 18 Jan 2022) · accessed Oct 2026
- Nigeria Customs car import rules 2026: age limit, LHD rule and new levies (Legit.ng, 18 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.