Nigerians smuggle cars across borders because of high clearance costs, stakeholders say

…as Customs seizes 870 smuggled vehicles worth N3.88bn in 15 months

By Efe Onodjae

New insights from the automobile and maritime sectors reveal that high vehicle clearing costs, port congestion, and freight charges are key reasons why many Nigerians turn to neighbouring countries and smuggle cars into the country.

Data from the Nigeria Customs Service (NCS) show that 870 vehicles were seized between 2025 and the first quarter of 2026 for violations related to importation and smuggling.

The Customs seizure report records 160 seizures involving those 870 vehicles. The affected vehicles had a Cost, Insurance and Freight (CIF) value of N3.136 billion, while the total Duty Paid Value (DPV) was N3.88 billion.

Speaking to Vanguard, Ajibola Adedoyin, National President of the Association of Motor Dealers of Nigeria (AMDON), said the main driver for vehicle importers to use neighbouring countries is the lower clearing charges.

He explained that many importers prefer to clear vehicles in places such as the Benin Republic before bringing them into Nigeria because the duties are considerably lower.

“It is not far-fetched. The major reason is the amount they are going to pay for clearing. It is less in those neighbouring countries, and that is why they take that route. Port congestion and the time required to clear vehicles in Nigeria also contribute to the trend. Those are the three major things people consider. But the principal factor remains the difference in the clearing duty amount. Every other thing comes after that,” he said.

He noted that although smuggling is risky, importers could lose millions of naira if intercepted. “If someone invests N10 million or N20 million in a vehicle and it gets seized, wouldn’t it have been better to properly declare and clear it? The risk involved is very high,” he added.

Adedoyin said smuggling can never be completely eliminated, but the government could curb it by reviewing vehicle import duties.

“We have consistently advised the government to bring down the cost of clearing vehicles. Doing so will discourage people from going to neighbouring countries to clear vehicles and then smuggle them into Nigeria,” he stated.

He further explained that many importers only consider the alternative route because the savings are substantial.

“If the difference is just N200,000 and your travel and logistics cost N120,000, it may not be worth it. But when the difference runs into N1 million or N2 million, many people see it as worthwhile, despite the risks,” he added.

Meanwhile, Eugene Nweke, Head of Research at the Sea Empowerment and Research Centre (SEREC), said economic realities often shape business decisions.

“Every businessman wants to maximise profit. If tariffs are competitive and aligned with realities in the sub‑region, vehicle smuggling will reduce significantly,” he said.

He pointed to disparities in shipping costs, noting that ocean freight charges to Nigerian ports are often significantly higher than charges to ports in neighbouring countries. “Some shipping lines charge considerably less to destinations such as Cotonou and Ghana compared to Nigeria, making those ports more attractive to vehicle importers,” he said.