Car importers in Nigeria have experienced a sharp rise in the cost of clearing foreign used vehicles at the nation’s ports in the past days following the reintroduction of the VIN (Vehicle Identification Number) valuation system by the Nigeria Customs Service and the addition of a 4% FOB (Free on Board) levy.
Nairametrics gathered from multiple importers and clearing agents that the VIN valuation system was reintroduced in the week before August 4, 2025, while the 4% FOB levy was implemented in the week starting August 4, 2025.
These two developments have pushed clearing costs significantly higher, with importers warning that the additional burden is already being passed on to end consumers in the form of higher vehicle prices.
Ken, a car importer based in Lagos, told Nairametrics that on Monday, July 4, 2025, he cleared a 2016 Mercedes GLE for N10 million an increase of N6 million compared to the usual clearing cost of N4–5 million. He attributed the increase primarily to the return of the VIN valuation system, which removes the flexibility for negotiations that was possible under the Form 846 system.
“Before now, Customs used Form 846, which is like a negotiation-based valuation,” he explained. “But with VIN valuation, once Customs inputs the chassis number into the system, the value it brings up is final. You can’t beat it down.”
In addition to the reintroduction of VIN, Ken also highlighted that the 4% FOB levy was added to the usual levies already borne by importers. These include the 20% import duty, 15% National Automotive Council levy, 7% port surcharge, 1% CISS (Comprehensive Import Supervision Scheme), and 0.5% ETL (ECOWAS Trade Liberalisation Scheme).
Ken revealed that the VIN valuation was briefly suspended after he cleared the vehicle, but not before the financial impact was felt. The cost increase, he said, is already affecting final retail prices, with the 2016 GLE now priced between N42 million and N44 million up from the previous N38–39 million. This also reduces the profit margin for dealers.
There was a protest recently by Nigerian car importers and fleet brokers about the reintroduction of the VIN valuation, which they argue significantly increases clearing costs.
A Lagos-based clearing agent, Uchenna Umeozor, CEO of Anothonice Nigeria Ltd., confirmed the addition of the 4% FOB levy. Contrary to earlier indications from Customs that the new charge would replace the 7% surcharge and 1% CISS, he said those charges remain in place, effectively compounding the total cost of importation.
On the VIN valuation, Umeozor explained that the application varies by vehicle year and terminal. For instance, at the Grimaldi terminal, Form 846 is still applicable for cars from 2014 downward, while VIN applies to vehicles from 2015 to 2023. However, Customs has reportedly given a 30-day grace period to continue using Form 846 across the board, a temporary reprieve for some importers.
Speaking to Nairametrics, Esu Bassey-Duke, MD/CEO of Stock Motorcars Limited, a Lagos-based importer of foreign and brand-new vehicles, also flagged the VIN valuation system as a challenge for the car trade. While he hasn’t had to pay the 4% FOB levy yet, he noted that VIN leaves no room for value negotiation and will “invariably be passed on to the end buyers.”
What this means
The recent actions by Customs reintroducing the VIN valuation and adding a 4% FOB levy — are already causing a significant rise in the cost of clearing imported vehicles. With car prices increasing by several million naira, industry players say consumers are likely to bear the brunt of these policy changes.
More importantly, the financial burden and uncertainty surrounding valuation are likely to slow down the volume of foreign used vehicle imports into Nigeria in the coming months.
Importers may either scale down or pause shipments due to cost pressures, a trend that could lead to a tighter vehicle supply market and make car ownership even more expensive for Nigerians.
