Step-by-Step Guide to Importing Used Cars into Nigeria Legally

Dreaming of that clean “Tokunbo” car but getting headaches just thinking about the stories from Apapa or Tin Can port? You’re not alone. The process of importing a used car into Nigeria can feel like a maze of paperwork, confusing taxes, and hidden costs designed to trip you up.

At Used Car Africa, we’ve guided countless buyers through this exact process. We understand the official rules and, more importantly, the on-the-ground realities. This guide isn’t just about what the regulations say, it’s about giving you the street-smart knowledge to navigate the system confidently, avoid costly mistakes, and get your car on the road without the drama.

The Legal Import Process: From Foreign Port to Your Driveway

Importing a car isn’t a one-day affair. It’s a sequence of official steps that must be followed correctly to avoid delays, penalties, or even seizure of your vehicle. Here is the port-to-plates workflow you need to master.

1. Pre-Shipment Due Diligence

Before you even think about paying for a car overseas, you must confirm it’s eligible for import into Nigeria. Getting this wrong means the car could be rejected at the port, and you’ll lose your money.

First, check the age limit. Nigeria currently prohibits the import of used vehicles older than 15 years from the year of manufacture. A 2008 model is eligible in 2023, but it won’t be in 2024. Second, get the Vehicle Identification Number (VIN) and run a history check using services like Carfax or AutoCheck. This ensures you’re not buying a salvaged or flood-damaged vehicle. Finally, ensure the seller can provide the essential original documents: the Bill of Sale and the vehicle’s Title/Ownership Certificate.

2. Find a Licensed Clearing Agent

This is the single most important step. In Nigeria, you cannot clear a car yourself; you must use a licensed customs clearing agent. A good agent is your representative on the ground, navigating the complexities of the port system. A bad one will cost you time, money, and endless frustration.

Ask for their license number and verify it. Get quotes from at least two or three agents and ask for a complete breakdown of all expected costs not just a single “all-in” figure. A transparent agent will list out customs duty, levies, shipping line charges, terminal fees, and their own agency fee separately.

3. Initiate the E-Customs Process (Form M & PAAR)

Once you have an agent, the formal process begins. Your agent, in collaboration with an authorized dealer bank, will help you open a Form M. This is a mandatory online application to the Nigeria Customs Service (NCS) declaring your intention to import.

After the Form M is approved, the NCS will issue a Pre-Arrival Assessment Report (PAAR). The PAAR is crucial it provides an estimated value for your vehicle and calculates the customs duty and other taxes you’ll have to pay upon its arrival. This document is the foundation for your total clearing cost.

Watch Out: The PAAR is Key
The value on your PAAR, not the price you paid for the car, is what Nigeria Customs uses to calculate your import duties. If the system values your ₦2 million car at ₦3 million, you pay taxes on the ₦3 million figure. A good agent can guide you on this, but don’t fall for promises to \”game the system\”—it often leads to costly penalties. Verify current rules locally before you act.

4. Shipping and Arrival at a Nigerian Port

With your documentation in progress, the seller can ship the vehicle to a Nigerian port, typically Apapa or Tin Can Island in Lagos. The shipping company will issue a Bill of Lading (B/L), a critical document that acts as a receipt and contract for the shipment. You must have the original B/L to claim your car.

Once the vessel arrives, the clock starts ticking. Your car will be offloaded into a bonded terminal, and you will start incurring storage charges (demurrage) after a few free days. This is why having a proactive agent is essential to get the car cleared quickly.

5. Duty Payment and Physical Examination

Using the PAAR, your agent will calculate the final customs charges. This is typically broken down as follows:

• Import Duty: A percentage of the vehicle’s assessed value (CIF – Cost, Insurance, and Freight).
• Surcharge: A port development fee.
• NAC Levy: A levy imposed by the National Automotive Design and Development Council.
• VAT: Value Added Tax on the total cost.

After you’ve paid all the assessed duties and taxes into the designated government accounts, your agent will schedule a physical examination. Customs officers will inspect the vehicle to ensure it matches the description in your import documents.

6. Release and Exit from the Port

Once Customs is satisfied, they will issue the final release. However, you still need to pay the shipping line and terminal operator for their local handling services. Your agent will collect the Terminal Delivery Order (TDO) and other gate passes. With all payments made and papers stamped, the car can finally be driven out of the port.

Local Realities: The Nigerian Import Game

Knowing the official steps is one thing; understanding how it works on the ground is another. Here’s what you need to know.

• Main Ports, Main Hustle: The vast majority of used cars enter through Apapa and Tin Can ports in Lagos. These are busy, complex environments where a good agent is worth their weight in gold.
• The 15-Year Rule is Firm: Don’t even try to import a vehicle older than 15 years. It will be seized by Customs, and you will lose both the car and your money.
• Popular Models Have Standard Values: Customs has a fairly standardized valuation database for popular “Tokunbo” cars like the Toyota Camry (“Muscle”), Toyota Corolla, Honda Accord (“End of Discussion”), and Lexus RX350. The duty on these is often predictable.
• Paperwork is King: The most common cause of delays is incorrect or incomplete documentation. The Original Bill of Lading, PAAR, and proof of duty payment are non-negotiable.
• Budget for the Unexpected: Always add a 10-15% contingency to your budget. Minor delays, unexpected storage fees, or small administrative charges can and do happen.

The Reality Check: Cutting Corners Will Cost You More

You will hear talk of “cutting corners” or finding an agent who can clear your car for an unbelievably low price. Be warned: this is the fastest way to trouble. Agents who promise to slash duties are often banking on undervaluing the car, which can be flagged by the Customs system. If caught, you face heavy penalties that will wipe out any potential savings, and your car will be stuck at the port racking up demurrage fees daily.

The biggest red flag is an agent who cannot provide a clear, itemized breakdown of costs. If their quote is just one lump sum with no details on duty, levy, or fees, walk away. Legitimate clearing is a transparent process with official, receipted payments.

Your Action Plan for a Smooth Import

Ready to move forward? Here are the concrete steps to take today.

1. Confirm Vehicle Eligibility: Check the year of manufacture. If it’s over 15 years old, stop.
2. Run a VIN History Check: Use a service like Carfax to ensure the car has a clean history.
3. Research Licensed Agents: Ask for recommendations or search the official database of licensed customs agents.
4. Get Itemized Quotes: Request a full cost breakdown from at least two agents. Compare the official charges (duty, levy, VAT) and their agency fees.
5. Secure All Original Documents: Before shipping, confirm the seller will send the Original Title and Bill of Lading via a courier like DHL.
6. Create a Contingency Fund: Set aside at least 10% of the total estimated clearing cost for unforeseen expenses.
7. Stay in Communication: Maintain regular contact with your chosen agent throughout the process.

Importing a car into Nigeria doesn’t have to be a nightmare. By understanding the legal steps, choosing a trustworthy partner, and being realistic about the costs, you can navigate the process like a pro. With this guide in hand, you are now equipped to make smart decisions and bring your dream car home, legally and with peace of mind.