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 surface duty)	₦6,387.50
ETLS levy (0.5% of CIF value)	₦9,125.00
CISS fee (1% of FOB)	₦15,000.00
Total	₦121,762.50
VAT (7.5% of all the above + CIF) i.e. TOTAL + CIF	₦146,007.19
Total Duty Payable to Customs (TOTAL + VAT)	₦267,769.69

List of Seaports in Nigeria

1. Lagos Port Complex
2. Tincan Island Port Complex
3. Rivers Port Complex
4. Onne Port Complex
5. Delta Port Complex
6. Calabar Port

List of Airports in Nigeria

International Airports:

1. Murtala Muhammed International Airport – Lagos
2. Akanu Ibiam International Airport, Enugu
3. Nnamdi Azikiwe International Airport
4. Mallam Aminu Kano International Airport
5. Port Harcourt International Airport
6. Ebonyi State International Airport
7. Kaduna International Airport
8. Ilorin International Airport
9. Sadiq Abubakar Iii International Airport
10. Anambra International Cargo

Local Airports:

1. Warri Airport
2. Maiduguri International Airport
3. Benin City Airport
4. Margaret Ekpo International Airport
5. Akure Airport
6. Sam Mbakwe International Cargo Airport
7. Ibadan Airport
8. Yola International Airport
9. Yakubu Gowon Airport, Jos
10. Makurdi Airport
11. General Tunde Idiagbon International Airport, Ilorin
12. Victor Attah International Airport
13. Minna Airport
14. Gombe Lawanti International Airport
15. Sir Abubakar Tafawa Balewa International Airport
16. Danbaba Suntai Airport, Jalingo
17. Asaba International Airport
18. Bida Airport
19. Katsina Airport