Understand every charge in your landing cost: duties, taxes, levies, freight, and port fees. Avoid surprises and save millions with accurate NCS-compliant calculations.
Your landing cost is more than just the product price. It includes freight, insurance, duties, taxes, and local charges. Here's the breakdown:
FOB value + Freight + Insurance = CIF (Cost, Insurance, Freight)
Import Duty (0-50%) + Surcharge (7%) + CISS (1%) + ETLS (0.5%)
VAT (7.5%) + Port & Clearance Fees (~₦150,000)
Follow this exact process used by Nigeria Customs Service (NCS) to calculate your total landing cost.
FOB (Free on Board): The product cost in USD at the origin port.
Freight: Shipping cost from origin to Lagos/Apapa (varies by method and origin country).
Insurance: Usually 0.5% of (FOB + Freight), though optional it's highly recommended.
Formula: CIF = FOB + Freight + Insurance
The CIF value forms the basis for most duty calculations and must be converted to Naira at the current CBN rate.
Import Duty: 0-50% of CIF depending on your product's HS (Harmonized System) code. The rate follows the ECOWAS Common External Tariff (CET).
Surcharge: 7% of the calculated Import Duty (for port development).
CISS (Comprehensive Import Supervision Scheme): 1% of FOB value.
ETLS (ECOWAS Trade Liberalization Scheme): 0.5% of CIF value.
These levies are mandatory and apply to nearly all imports. Some exemptions exist for raw materials under specific incentive schemes.
VAT (Value Added Tax): 7.5% of the sum of (CIF + Import Duty + Surcharge + CISS + ETLS).
Port Charges: Approximately ₦150,000 fixed estimate covering terminal handling, storage, documentation, and clearance fees. This varies by port and cargo type.
Total Landing Cost = CIF + All Duties + VAT + Port Charges
With the National Single Window system launching in March 2026, clearance times will reduce to 48 hours, minimizing demurrage risks.
Complete reference for all import cost components in Nigeria (2026 rates).
| Component | Calculation Base | Rate (2026) | Notes |
|---|---|---|---|
| FOB Value | Product Cost | Variable | Convert to NGN at current CBN rate |
| Freight | Shipping Cost | Variable | Sea FCL is cheapest for bulk shipments |
| Insurance | FOB + Freight | 0.5% | Optional but highly recommended |
| CIF Total | FOB + Freight + Insurance | — | Base for most duty calculations |
| Import Duty | CIF | 0% – 50% | Based on HS code (0% raw materials, 20% machinery, 35% vehicles, 50% luxury goods) |
| Surcharge | Import Duty | 7% | Mandatory levy for port development |
| CISS | FOB | 1% | Comprehensive Import Supervision Scheme (may be reformed) |
| ETLS | CIF | 0.5% | ECOWAS Trade Liberalization Scheme levy |
| VAT | CIF + Duty + Surcharge + CISS + ETLS | 7.5% | Standard VAT rate (potential increase pending reforms) |
| Port Charges | Fixed Estimate | ≈ ₦150,000 | Terminal handling, documentation, clearance fees |
Important: Rates are current as of late 2025. The National Single Window system launching in March 2026 may consolidate some levies and streamline processes. Always verify current rates with NCS or use our calculator for real-time accuracy.
Choose the right freight method to optimize costs and transit times for your business.
Use our free calculator – updated for 2026 NCS rates – to get a personalized breakdown instantly. No hidden fees, no surprises.
