Why smuggling continues across Nigeria’s borders

Customs has seized 870 smuggled vehicles valued at N3.88 billion over a 15‑month period.

By Efe Onodjae

Stakeholders in the automobile and maritime sectors say that delays and high clearance costs push Nigerian car importers to use ports in neighbouring countries and to smuggle vehicles across borders.

Records from the Nigeria Customs Service (NCS) show that no fewer than 870 vehicles were seized between 2025 and the first quarter of 2026 for violations related to importation and smuggling.

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

In an interview with Vanguard, Ajibola Adedoyin, the National President of the Association of Motor Dealers of Nigeria (AMDON), said that the main factor driving vehicle importers to neighbouring countries is the significant difference in clearance charges.

He explained that many importers prefer to clear vehicles in countries 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.”

Adedoyin noted that while smuggling can never be completely eliminated, the government can significantly reduce 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 involved 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 that economic realities often influence 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 stated.

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.

According to him, some shipping lines charge considerably less to destinations such as Cotonou and Ghana compared to Nigeria, making those ports more attractive to vehicle importers.