Why car prices remain high despite reduction in tariff

Guardian Nigeria

Wondering why the price of imported cars hasn't dropped even after a significant tariff reduction? We've got the inside scoop!   While the government slashed import tariffs from 70% to 40%, the actual cost you pay at the car lot tells a different story. This video breaks down the hidden fees and charges that keep car prices soaring.   Discover how additional levies like the ECOWAS trade levy, VAT, and various port charges add up. We'll also explore the substantial impact of delays and demurrage in the clearing process, and why that 30% tariff reduction often gets swallowed up.   Understand the real factors driving car prices and why arguing with importers about the cost won't change the reality. Get informed about the true cost of importing cars into Nigeria.   #CarPricesNigeria #ImportTariffs #EconomicPolicy

Transcript

00:00The federal government has reduced tariff in imported items, including imported cars, in the 2026 fiscal policy measure.

00:07From 70% we are paying to import a car, down to 40%. There is 30% reduction.

00:14Yes, you go to the car lot to buy the car, but you discover that the reduction is not evident.

00:19Here is why.

00:20Aside the tariff that we are paying, we still have the ECOWAS trade levy, which is 0.5.

00:25We have the VAT, 7.5. We have the port development levy, 7%.

00:29We have the terminal charges, we have the shipping charges, and we have the demurage.

00:33We know in Nigeria, to clear goods, it takes 21 days.

00:35Now, calculate if demurage is 50,000 per day. Now, calculate that 50,000 takes 21 days.

00:42Now, you see why the prices of cars will still be high.

00:46When you get to the car lot, don't argue with the car importer that the price is still high.

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