AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Landed cost is everything you pay to get one unit of imported stock into your hands: product price + freight + insurance + customs duty, levies and VAT + agent or clearing fees + local delivery, divided by the number of units you can actually sell. Duty is set by the product's HS code under the ECOWAS Common External Tariff, and VAT is 7.5% under the Nigeria Tax Act 2025.
Importers who lose money usually do not lose it on the product. They lose it on the lines they did not count: the agent's fee, a heavier parcel than expected, a duty band they guessed, a broken carton, or the naira moving between quoting and paying. Landed cost puts all of those into one number per unit, so your selling price starts from the truth.
The formula
Landed cost per unit = (Product cost + Freight + Insurance + Duty, levies and VAT + Agent and clearing fees + Local delivery + Payment costs) ÷ Units you can sell
- Product cost
- The supplier's price for the goods, converted to naira at the rate you actually paid, plus any delivery inside the supplier's country.
- Freight
- Air cargo per kg, sea cargo per CBM or container. Ask whether the quote is to the port, to the agent's office or to your door.
- Insurance
- Optional for small cargo but part of the customs value on formal imports (see FOB vs CIF).
- Duty, levies, VAT
- On formal clearance, duty is a percentage of the customs value set by the HS code; VAT and other charges are added on the Customs assessment.
- Agent and clearing
- Buying agent's fee, clearing agent's fee, terminal and handling charges.
- Local delivery
- Port or office to your shop or store, plus loading.
- Payment costs
- Bank or transfer charges and the cost of converting naira.
Divide by units you can sell, not units you ordered. If 3% usually arrive damaged or missing, plan for it.
Where duty and VAT come from
The Nigeria Customs Service publishes the tariff through its CET Lookup Portal (cet.customs.gov.ng), searchable by chapter, commodity or keyword. The US International Trade Administration's summary, last published September 2025, describes the five ECOWAS CET bands: 0% (essential goods such as capital equipment and medicines), 5% (raw materials), 10% (intermediate goods), 20% (finished consumer goods) and 35% (goods in sensitive sectors). It adds that levies, excise and VAT can push the effective rate higher, with a stated ceiling of 70% per line item. VAT stays at 7.5% under the Nigeria Tax Act 2025, effective 1 January 2026. Confirm how VAT and any levies are calculated for your goods on the actual assessment or with a licensed agent; this article gives the method, not tax advice. See how to find an HS code and import duty.
Worked example 1: a formal import with duty
| Line | How it is worked out | Example amount |
|---|---|---|
| Goods (FOB), 500 kitchen blenders | Supplier invoice in naira at the rate paid | ₦4,000,000 |
| Freight and insurance | Forwarder's quote | ₦600,000 |
| Customs value (CIF) | Goods + freight + insurance | ₦4,600,000 |
| Duty at an example 20% band | 20% × ₦4,600,000 | ₦920,000 |
| VAT at 7.5%, example base CIF + duty | 7.5% × ₦5,520,000 | ₦414,000 |
| Clearing agent, terminal, handling | Agent's written quote | ₦250,000 |
| Haulage to warehouse | Haulier's quote | ₦120,000 |
| Bank and transfer charges | From your bank's statement | ₦16,000 |
| Total landed cost | Sum of CIF, duty, VAT, clearing, haulage, charges | ₦6,320,000 |
| Per sellable unit (490 after 10 damaged) | ₦6,320,000 ÷ 490 | ₦12,897.96 |
The goods were ₦8,000 each at FOB. By the time they reach the warehouse they cost almost ₦12,900 each, about 61% more. A selling price set from ₦8,000 would look profitable and lose money.
Worked example 2: mini importation by air cargo
| Line | Example amount |
|---|---|
| 200 LED desk lamps from a 1688 seller | ₦1,200,000 |
| Agent buying fee (example 5%) | ₦60,000 |
| Delivery to agent's China warehouse | ₦25,000 |
| Air cargo 40 kg at an example ₦12,000 per kg, clearing included | ₦480,000 |
| Local delivery | ₦15,000 |
| Payment charges | ₦10,000 |
| Total | ₦1,790,000 |
| Per sellable unit (198 after 2 broken) | ₦9,040.40 |
Here freight alone is 40% of the product cost. A lamp that weighed half as much would have saved ₦240,000 on the shipment, which is why weight per unit is the first number to ask a supplier for.
From landed cost to selling price
- Take landed cost per sellable unit.
- Add your selling costs per unit: platform or checkout fees, packaging, delivery you absorb, adverts.
- Choose a margin and price from it: price = total cost ÷ (1 − margin). For a 30% margin on a ₦10,000 total cost, price = ₦10,000 ÷ 0.7 = ₦14,286.
- Check the price against what buyers already pay, then re-run the sum if the naira moves before your next order (see pricing imported goods when the naira moves).
What to check first
- The HS code and duty band on the CET Lookup Portal, confirmed by a licensed agent.
- Whether the freight quote includes clearing, delivery and insurance.
- The real weight and carton size, from the supplier in writing.
- That the goods are not on a prohibition list.
- That your clearing agent appears on the Customs list of licensed agents (see how to check a customs agent).
Where Pryme fits
A Pryme Business Account keeps NGN, USD, GBP and EUR in one place with local account details for each, so you can see exactly what each conversion cost: Swap shows the rate first and the fee on its own line, and you approve before anything converts. That makes the product and payment-cost lines in your landed cost a recorded figure rather than a guess. See business multicurrency.
Questions people ask
What is landed cost in importation?
It is the full cost of getting imported goods to you, per unit: product, freight, insurance, duty, VAT and levies, agent and clearing fees, local delivery and payment charges, divided by the units you can sell.
How do I calculate customs duty in Nigeria?
Find the product's HS code on the Customs CET Lookup Portal, apply the duty rate to the customs value (usually CIF), then add VAT and any levies shown on the assessment. Confirm with a licensed clearing agent.
Is VAT charged on imports in Nigeria?
Yes, VAT applies to imported goods and remains 7.5% under the Nigeria Tax Act 2025, effective 1 January 2026. It appears on the Customs assessment with duty and levies.
Should I include damaged goods in landed cost?
Yes. Divide total cost by the units you can actually sell. If two of 200 lamps break, divide by 198, which raises the cost of every good unit.
Sources
- US International Trade Administration: Nigeria, Trade Barriers (last published 5 Sep 2025) · accessed Oct 2026
- Nigeria Customs Service: CET Tariff (links to the CET Lookup Portal) · accessed Oct 2026
- Forvis Mazars: Nigeria's tax reform in focus, 2025 NTA VAT key business changes (16 Mar 2026) · accessed Oct 2026
- Nigeria Customs Service: Licensed Agents (active and black-listed lists) · 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.