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The short answer
A Nigerian importer pays customs duty at the CET rate for the goods (0% to 35% bands, plus any levies), then VAT at 7.5% on a value that includes the duty and costs up to the point of entry, payable at the port of importation. A VAT-registered importer claims that port VAT back as input VAT against the VAT it charges on sales, and pays company income tax and the development levy on profit, unless it is a small company.
An import business meets tax at three points: at the port, at each sale and at year end. Owners who treat port VAT as a cost, or forget that duty raises the VAT base, misprice their goods. This guide shows how the layers fit together.
Layer 1: customs duty
Nigeria applies the ECOWAS Common External Tariff (CET). The US International Trade Administration's September 2025 guide lists five bands: 0% for essential goods and capital equipment, 5% for raw materials, 10% for intermediate goods, 20% for finished consumer goods and 35% for goods in sensitive sectors. Levies, excise and VAT may be added, and the total effective rate per line is not to exceed 70%.
The rate depends on the HS code of the item. The Nigeria Customs Service's CET page links to a CET Lookup Portal where you search by chapter, commodity or keyword. Levy rates were not on that page, so ask your licensed clearing agent for the full charge on your line. Documents such as Form M and PAAR are covered in the import documents checklist.
Layer 2: VAT at the port
Grant Thornton's indirect tax guide (published January 2025, before the new Act) says VAT on imported goods "is payable by the importer at the port of importation". Mondaq's May 2026 review of section 150 of the Nigeria Tax Act 2025 adds that VAT on imports is not charged on the purchase price alone but on a value including "custom duties, and related cost up to the point of entry". The rate is 7.5% (Forvis Mazars, March 2026).
Layer 3: recovering port VAT
For a VAT-registered importer, port VAT is input VAT. You charge 7.5% output VAT when you sell, deduct the input VAT paid at the port, and pay the difference by the monthly deadline (return by the 21st under section 22(1) of the Nigeria Tax Administration Act 2025). Forvis Mazars notes that from 1 January 2026 input VAT on services and fixed assets used for taxable supplies is also claimable, so VAT on clearing fees, haulage and warehouse equipment may now be recoverable. Excess input VAT can be carried forward or refunded.
A small business (turnover of ₦100 million or less and fixed assets of ₦250 million or less) is exempt from VAT registration and charging, but may opt out of the exemption by written notice (Forvis Mazars). An exempt importer has no output VAT to set port VAT against, so ask the NRS or your adviser how port VAT is treated in your case before choosing.
Layer 4: profit tax
At year end, the import company pays company income tax: 0% if it is a small company (section 56(a)), otherwise 30% (section 56(b)), plus the 4% development levy on assessable profits unless it is small (section 59). Customs duty is part of the cost of the goods; recoverable VAT is not, because you get it back.
Worked example
Example only, simplified. Emeka Imports Ltd brings in one container of finished consumer goods. Levies, surcharges and exchange-rate effects are left out; check your real figures with your agent.
| Step | ₦ |
|---|---|
| CIF value of goods | 10,000,000 |
| Customs duty at 20% | 2,000,000 |
| VAT base (CIF + duty) | 12,000,000 |
| Port VAT at 7.5% | 900,000 |
| Cash paid out at port and to supplier | 12,900,000 |
| Goods sold for (before VAT) | 16,000,000 |
| Output VAT at 7.5% | 1,200,000 |
| Net VAT to NRS (1,200,000 − 900,000) | 300,000 |
| Profit: 16,000,000 − 12,000,000 cost − 1,500,000 other expenses | 2,500,000 |
| CIT at 30% (not a small company) | 750,000 |
| Development levy at 4% (same base assumed) | 100,000 |
The ₦900,000 port VAT comes back through the VAT return, so the goods cost ₦12,000,000, not ₦12,900,000. If Emeka priced on ₦12,900,000 he would overcharge and lose sales; if he forgot the cash timing, he would be short until the VAT return month. A small company on the same figures would pay ₦0 CIT and no levy.
Cash timing
Port VAT is paid when the goods are cleared, but it only comes back when you file the VAT return for that month and set it against output VAT on sales. If the goods sell slowly, the input VAT sits as a credit for months. Plan working capital for duty plus port VAT on every container, not just the supplier invoice.
What to check first
- Confirm the HS code and CET band before you order, using the Customs CET Lookup Portal.
- Keep port VAT evidence with each container's file; it is your input VAT claim.
- Decide whether you are a small company or not for CIT and VAT, and keep checking each year.
- Price imported goods on duty-inclusive, VAT-exclusive cost. See pricing imported goods.
Where Pryme fits
Importers can hold USD, GBP and EUR alongside naira with business multicurrency and convert with Swap when they choose, with the rate shown first and the fee on its own line. Outside Nigeria, financial activities are carried out through regulated partners.
Questions people ask
How much is import duty in Nigeria?
It depends on the item's HS code under the ECOWAS CET: 0%, 5%, 10%, 20% or 35%, plus any levies and excise, per the US ITA guide of September 2025. Check the Customs CET Lookup Portal.
Do importers pay VAT at the port in Nigeria?
Yes. VAT at 7.5% is payable by the importer at the port, on a value that includes customs duty and costs up to the point of entry.
Can I claim back VAT paid on imports?
A VAT-registered importer treats port VAT as input VAT and deducts it from the output VAT on sales in its monthly return.
Is customs duty deductible for company tax?
Duty is part of the cost of the goods, so it reduces profit as the goods are sold. Recoverable VAT is not a cost.
Sources
- US International Trade Administration: Nigeria trade barriers (5 Sep 2025) · accessed Oct 2026
- Nigeria Customs Service: CET tariff and CET Lookup Portal · accessed Oct 2026
- Grant Thornton: Indirect tax guide, Nigeria (published 1 Jan 2025, pre-2025 Act) · accessed Oct 2026
- Mondaq: Examination of the VAT provisions under the Nigeria Tax Act 2025 (28 May 2026) · accessed Oct 2026
- Forvis Mazars: VAT and Nigeria's 2025 tax reforms, key business changes (16 Mar 2026) · accessed Oct 2026
- Nigeria Tax Act 2025 (assented 26 Jun 2025), sections 8, 20, 21, 55, 56 and 59 · 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.