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The short answer
Nigeria Customs starts from the CIF value of your goods (cost, insurance and freight to the Nigerian port) converted to naira at the CBN rate on the day of assessment, then applies the ECOWAS Common External Tariff rate for the HS code, from 0% to 35%. On top come a 7% surcharge on the duty, 1% CISS on the FOB value, 0.5% ETLS on CIF, any product levy or excise, and 7.5% VAT on CIF plus all of those.
Whether you are shipping stock to a Nigerian buyer, sending equipment to your own business at home or pricing goods for a distributor, the landed cost in Nigeria decides whether the deal works. Duty is not one figure but a stack of charges on different bases. Once you see how they stack, you can estimate any shipment in a few minutes.
Step 1: the customs value
The starting point is the CIF value: what was paid for the goods, plus insurance and freight to the Nigerian port. The Nigeria Customs Valuation Guide 2026, based on the Nigeria Customs Service Act 2023 and the WTO valuation agreement, says Customs must try these methods in order:
- Transaction value: the price actually paid or payable, adjusted for items like freight and insurance.
- Value of identical goods.
- Value of similar goods.
- Deductive value, working back from resale prices in Nigeria.
- Computed value, built up from production costs.
- A fall-back method using reasonable means.
The guide also lists methods Customs may not use, including minimum values, arbitrary or fictitious values and the higher of two values. Foreign-currency values are converted at the CBN rate on the day of assessment, so the naira cost can move between shipping and arrival. Whether CIF or FOB terms suit the buyer is explained in FOB vs CIF for Nigerian importers.
Step 2: the duty rate
Nigeria applies the ECOWAS Common External Tariff (CET). The US trade.gov guide (published 5 September 2025) describes five bands:
| Band | Rate | Typical goods |
|---|---|---|
| 0 | 0% | Essential social goods, capital equipment, medicines |
| 1 | 5% | Raw materials |
| 2 | 10% | Intermediate goods |
| 3 | 20% | Finished consumer goods |
| 4 | 35% | Goods in sectors Nigeria protects |
The rate for your goods depends on the HS code, so classification matters more than anything else. Customs' CET tariff page has a search by chapter, commodity or keyword and a CET lookup portal. Some lines also carry an import adjustment or national levy, and trade.gov notes that the total effective rate on a line is not meant to exceed 70%.
Step 3: the charges on top
DHL's Nigeria guide (25 June 2026) sets out the standard add-ons:
| Charge | Rate | Charged on |
|---|---|---|
| Surcharge | 7% | The import duty |
| CISS (Comprehensive Import Supervision Scheme) | 1% | FOB value |
| ETLS (ECOWAS Trade Liberalisation Scheme levy) | 0.5% | CIF value |
| VAT | 7.5% | CIF plus duty, surcharge and levies |
Product-specific levies and excise, for example on vehicles, alcohol or tobacco, are added before VAT. Vehicles have their own levy rules; see used cars: age limits and duty.
Worked example
This follows DHL's published example: finished consumer goods at 20% duty, FOB ₦3,000,000, freight ₦400,000 and insurance ₦50,000, so CIF is ₦3,450,000.
| Item | Calculation | Amount |
|---|---|---|
| Import duty | 20% × ₦3,450,000 | ₦690,000 |
| Surcharge | 7% × ₦690,000 | ₦48,300 |
| CISS | 1% × ₦3,000,000 | ₦30,000 |
| ETLS | 0.5% × ₦3,450,000 | ₦17,250 |
| VAT base | ₦3,450,000 + ₦690,000 + ₦48,300 + ₦30,000 + ₦17,250 | ₦4,235,550 |
| VAT | 7.5% × ₦4,235,550 | ₦317,666.25 |
| Total payable to Customs | Duty + surcharge + CISS + ETLS + VAT | ₦1,103,216.25 |
Here charges add about 32% to the CIF value. If the same goods were classified at 10% instead, duty would be ₦345,000, the surcharge ₦24,150, CISS and ETLS unchanged at ₦30,000 and ₦17,250, and VAT 7.5% of ₦3,866,400, which is ₦289,980: a total of ₦706,380, about ₦396,836 less. That gap is why the HS code is the first thing to settle with your buyer or agent.
Mistakes that raise the bill
- A low invoice. An invoice that does not match the real price invites Customs to reject the transaction value and move to another method. DHL warns that unusually low agent quotes can signal under-declaration or misclassification.
- A vague description. "Assorted goods" cannot be classified. The invoice should describe each item well enough to find its HS code; see what an invoice should show for customs.
- Forgetting freight and insurance. Duty is on CIF, so an FOB-only estimate understates every line.
- Timing. Because the CBN rate on the assessment day applies, a weaker naira on arrival raises the naira bill even when the dollar value has not changed.
What is not in the duty figure
- Terminal handling, storage and shipping-line charges at the port; see demurrage at Lagos ports.
- Clearing agent fees; see checks before hiring a clearing agent.
- SONCAP certificate fees, where the goods need SONCAP.
- Inland transport from the port.
Where Pryme fits
Duty and port charges are paid in naira, and the naira amount is fixed only at assessment. Holding funds in a Pryme Business Account lets you convert from GBP, USD or EUR on Swap when the assessment arrives, with the rate and fee shown before you approve, and the Finance agent can track each shipment's landed cost for you to review.
Questions people ask
How is customs duty calculated in Nigeria?
On the CIF value converted at the CBN rate on the day of assessment, at the CET rate for the HS code, plus a 7% surcharge on duty, 1% CISS on FOB, 0.5% ETLS on CIF and 7.5% VAT.
What are the CET duty bands in Nigeria?
0%, 5%, 10%, 20% and 35%, depending on whether goods are essential, raw materials, intermediate, finished or in protected sectors.
Is VAT charged on import duty in Nigeria?
Yes. VAT at 7.5% is charged on the CIF value plus duty, surcharge and levies.
Which exchange rate does Nigeria Customs use?
The CBN rate on the day the goods are assessed, so the naira cost can change between shipping and arrival.
Sources
- DHL: How to calculate import duties in Nigeria, 25 Jun 2026 · accessed Oct 2026
- Nigeria Customs Service: Nigeria Customs Valuation Guide 2026 · accessed Oct 2026
- trade.gov: Nigeria trade barriers, 5 Sep 2025 · accessed Oct 2026
- Nigeria Customs Service: CET tariff · accessed Oct 2026
- DHL: How to select the right clearing and forwarding agent, 31 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.