Nigeria's reduced vehicle tariffs may not be enough to pull a meaningful volume of vehicle imports back through Lagos ports unless clearing costs and processing times improve, according to industry operators.
Under the 2026 Fiscal Policy Measures, effective April 1, 2026, the Federal Government lowered the effective tariff on fully built passenger vehicles, four-wheel-drive vehicles and station wagons from 70% to 40%. From July 1, the import levy on new vehicles was reduced from 20% to 10% and on used vehicles from 15% to 5%.
Clearing agents and importers argue that the total landed cost, not the statutory duty alone, determines where cargo is routed. Gbenga Omotosho, a clearing agent at Apapa Port, said importers weigh customs charges alongside storage, terminal handling, possible demurrage, clearing agent fees and transportation costs before choosing between Lagos and Cotonou. "Every additional day a vehicle remains within a port or terminal can add storage, handling, financing and other logistics costs," he said.
Okechukwu Ibe, a car importer in Lagos, said lower tariffs should eventually reduce vehicle prices but warned that the policy alone may not discourage importers from using neighbouring ports. He noted that a lower customs bill will not automatically make Lagos cheaper if port and logistics charges erase the savings.
Ajibola Adedoyin, National President of the Association of Motor Dealers of Nigeria, cited clearing charges, port bottlenecks and clearance time as key reasons importers route cargo through neighbouring countries. He said routing vehicles through a neighbouring country becomes commercially attractive when the difference in clearing costs is large enough to offset additional logistics.
Vice President Kashim Shettima recently said cargo dwell time at Nigeria's major ports averaged 18 to 21 days, compared with five to seven days in Ghana and about four days at Cotonou. Industry operators say such delays can erode tariff savings through storage, financing and other costs.
The Lagos Port Complex has road, water and rail connections as well as five private terminals, according to the Nigerian Ports Authority, but operators say these advantages must translate into shorter clearance times and lower logistics costs. Predictability remains a concern, since valuation, inspection, terminal charges and storage costs can still be difficult to forecast.
