Importing cars into Nigeria: A step-by-step guide

Across Nigeria today, the most popular way, whether for personal or business reasons, to achieve a lifestyle upgrade or acquire wealth is to import a car. The car importation business has expanded to the extent that almost every middleman in Lagos knows someone who can “bring you a car from Cotonou or America.”

But the reality is that this is not straightforward, as people make it look on Instagram.

Many things go on behind the scenes: port charges, customs frustrations, and agents that will leave you hanging after collecting their fee. First-time experience can really be overwhelming, especially if things go wrong. Many Nigerians have lost millions under the name, “I know someone who can help me import a car.” Others end up with salvaged or smuggled vehicles, only to be turned away on registration or resale attempts.

If you’re thinking of importing a car into Nigeria, this article will guide you through the process. You will learn how to import a car legally, safely, and smartly. 

Step 1: Choosing the right car 

The first phase of buying a car is deciding what car you want and why. Will it be for personal use or resale? If the car is for personal use, you will consider things like comfort, fuel efficiency, and maintenance cost. If the car is for resale, then you have to consider the market demand, the market price, and how quickly you can flip it for a profit.

Importation is possible in Nigeria for the following majorly imported cars: Toyota (Corolla, Camry, Highlander), Lexus RX models, Honda (Accord and Pilot), and Mercedes-Benz (for the premium crowd). All of these cars have a large market, they have accessible parts, and they have guaranteed resale value. Attractive auctioned cars, such as BMWs or Peugeots, are often harder to maintain in Nigeria because of poor road conditions and parts becoming pricey.

Check also the year of manufacture. According to Nigerian law, vehicles that are more than 15 years old will be denied importation. So, don’t spend money on a 2004 car and then, later on, expect it to clear all the customs.

Step 2: Where the cars are coming from 

The bulk of imported vehicles into Nigeria comes from the US, Canada, Dubai, and parts of Europe. For the budget-conscious ones, the U.S. auction sites, such as Copart and IAAI, are the gateway. They provide a platform for bidders to bid on used cars, some almost new, at prices lower than those in Nigeria. The trick here is to learn how to decipher auction codes and understand vehicle history reports.

You shouldn’t take that up yourself, though. The general perception of car importing among Nigerians is that they will hire auto dealers or “connects” abroad, who do auction bidding for them, arrange documentation, and handle shipping logistics. Here, that trust comes in. Deal with someone whom you can trust, who is accountable, responsible, and with a good track record. Many have lost money working with unverified agents.

Step 3: Payment and shipping

Having selected the car, checked its VIN, the next move is paying for the vehicle. Most dealers ask for a full upfront payment for the vehicles and shipping. Currently, shipping a sedan or midsize SUV, depending on the location, with everything else-traditionally costs between $1,000 and $2,000.

Usually, cars are shipped to either Tin Can Island or Apapa Port in Lagos. Another method that certain dealers apply is shipping cars to Cotonou and later bringing them through the Seme Border, but this method has become riskier in recent years due to increased border patrols and crackdowns on smuggled vehicles. If you don’t want unnecessary issues, stick to the legal route through Lagos ports.

Shipping can take anything from 4 to 8 weeks, depending on delays and congestion at the ports. While you’re in this waiting period, expect updates from your dealer or shipper. Essential documents needed include the Bill of Lading, Vehicle Title, and Purchase Invoice — all of which will be required for clearing the car when it arrives in Nigeria.

Step 4: Clearing the car at the Port 

This is where most of the headaches begin — clearing the car through customs. Without a serious and experienced clearing agent, it can turn into a nightmare. Delays, costs that were not anticipated, excuses, or even impoundments can happen if things have not been done properly.

To clear a car at the ports in Nigeria, the agent has to process your documents through customs. This includes applying Form M and the generation of a Pre-Arrival Assessment Report (PAAR). Customs assesses the car’s value using benchmark criteria, usually based on the model, year, and country. Duties and levies are calculated from there. 

Import duty on cars is generally 35% of the value of the car (cost + insurance + freight) plus VAT and some other charges. But there is no flat rate, so don’t believe anyone who says that “it is ₦600k to clear any car.” Expect an amount of around ₦900,000 to ₦1.5 million for a standard Tokunbo Toyota Corolla, depending on the year and port dynamics. SUVs and luxury vehicles will see even higher amounts, and sometimes even as high as ₦3 million.

Your clearing agent guides you in all these, but you must monitor them closely. Some agents inflate prices, charge unnecessary “bribe fees,” or delay for weeks after collecting your balance. Always get a written agreement and insist on the receipt for every payment made. Keep records. Ask questions. In Nigeria, silence is interpreted as permission or stupidity.

Step 5: Clearing the vehicle from the terminal and taking it home

After your car clears customs and you have paid all other charges, your agent will start processing the terminal delivery for your car. This opens the way for the release of your car from the bonded terminal or holding area of the shipping company, where it was kept until it was delivered.

Theoretically, all things being equal, you should be able to pick up the car on the same day the final clearance is accomplished. 

Before driving off in the car, make sure to inspect the vehicle thoroughly. See that it starts, check for any missing or damaged components, and make sure all of your papers are in order.

If you’re buying to resell, then you’re in the right spot to snap sharp photos and list your car on Jiji, Cheki, or sell through some car stands. You should probably have an idea of the market price for that model in Nigeria, so you can set an attractive price.

Step 6: Vehicle registration and licensing

Clearing the car is just the beginning. You have to register the vehicle with the Federal Road Safety Corps (FRSC) to drive it legally in Nigeria. The process to get a vehicle license, number plates, insurance (3rd party or comprehensive), and proof of ownership starts with that.

You will also have to present your customs clearance documents and proof of payment, as well as a valid ID. Some states are more lenient about this than others, but you have to set aside, as a rule of thumb, between ₦40,000 and ₦120,000 for full registration, depending on the car type and the states in which you reside.

It is common practice to leave such cars unregistered when importing for resale, assuming the buyer would do so, but if you want to drive it personally, make sure it is fully documented. Nigerian police and road safety officials are very keen on unregistered or incorrectly documented vehicles.

Conclusion

Importing a car into Nigeria may be a wise decision, with prices always soaring locally. You will get a much better deal importing a car than buying from most Nigerian car stands, but the entire process must be done with full awareness to ensure everything goes smoothly. 

Do your research. Know the car you want. Hire experts. Avoid rushing into deals just because someone said, “The ship is leaving tomorrow.” He who asks questions does not get lost. If it’s too cheap or too quick, then there is something wrong with the deal.

For a smooth car importation experience, you need patience, planning, and trustworthy agents.  Whether you are buying for personal use or turning it into a business, knowledge is what protects your money.