Stakeholders blame high duties, port congestion, and shipping cost disparities for persistent vehicle smuggling across Nigeria’s borders.
Despite record seizures valued at over N3.88 billion, Nigerian car importers continue to smuggle vehicles through neighbouring countries driven by prohibitive clearing costs and logistical bottlenecks at home, industry experts have revealed.
According to the Nigeria Customs Service (NCS), authorities seized 870 vehicles across 160 operations between 2025 and the first quarter of 2026. The confiscated vehicles carried a Cost, Insurance and Freight (CIF) value of N3.136 billion, with a total Duty Paid Value (DPV) of N3.88 billion.
But enforcement alone isn’t solving the problem, stakeholders say.
‘Difference Runs Into Millions’
Ajibola Adedoyin, National President of the Association of Motor Dealers of Nigeria (AMDON), told Vanguard that the primary driver is the stark contrast in clearing charges between Nigeria and its neighbours.
“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,” Adedoyin said.
He identified three key factors pushing importers toward ports in Benin Republic and other neighbouring countries:
1. Lower import duties significantly cheaper than Nigeria’s tariffs
2. Port congestion – lengthy delays at Nigerian ports
3. Time inefficiency faster processing elsewhere
“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 explained.
Adedoyin urged the government to reduce vehicle import duties, arguing that “smuggling can never be completely eliminated” but can be significantly curtailed through tariff reform.
Shipping Cost Disparities
Eugene Nweke, Head of Research at the Sea Empowerment and Research Centre (SEREC), pointed to another overlooked factor: unequal freight charges.
“Every businessman wants to maximise profit. If tariffs are competitive and aligned with realities in the sub-region, vehicle smuggling will reduce significantly,” Nweke stated.
He noted that shipping lines often charge considerably less to deliver vehicles to Cotonou (Benin) or Ghana than to Nigerian ports making the alternative route economically irresistible despite customs enforcement efforts.
What This Means
With Nigeria losing billions in potential revenue and thousands of vehicles entering illegally, stakeholders are calling for a holistic policy review not just tighter border patrols to address the root economic causes of cross-border smuggling.
