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How to Calculate Import Duty - Nigeria

Import Duty in Nigeria

What is import Duty?
Import duty (customs duty) is a tax imposed on imports and exports of goods.

How to calculate import duty

Import duty is calculated by summing up surface duty (% of CIF), surcharge, administrative charge (CISS), ECOWAS Trade Liberalization Scheme (ETLS), and 7.5% VAT.

Example using 5% import duty:

  • FOB: Free on Board which is the actual cost of the imported items without putting the cost of the transportation or handling. To use this figure in calculation of Duty you must convert to Nigerian Naira (i.e. FOB in currency of export country × exchange rate).
  • Freight: This is the cost of transporting the imported items to the designated port of discharge which could be by Sea, Air or Road. This also must be converted to Naira (i.e. Freight in currency of export country × exchange rate).
  • CIF: Cost/ commercial invoice, Insurance and Freight. To get your CIF, you add the cost of the imported items, the insurance value (1.5% of FOB) and the cost of transportation (freight).

Take for instance:

  • FOB = ₦1,500,000.00
  • Freight = ₦300,000.00
  • Insurance = ₦25,000.00

CIF = ₦1,825,000.00

Description Amount (₦)
Surface duty (5% on CIF) ₦91,250.00
Surcharge (7% of Duty) ₦6,387.50
CISS (1% of FOB) ₦15,000.00
ETLS (0.5% of CIF) ₦9,125.00
VAT (7.5% of (CIF + Duty + ETLS + CISS + Surcharge)) ₦145,290.94
Total Duty Payable ₦267,053.44

Additional Charges

There might be additional charges such as shipping company charges, terminal handling charges, and other logistics-related fees.

Common Import Items and Their Rates

  • Vehicles: 35%
  • Machinery: 5%
  • Textiles: 20%
  • Electronics: 20%
  • Pharmaceuticals: 0%