Nigeria Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in nigeria, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Temporary Entry
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Overview

The Board of Customs and Excise grants temporary importation status and duty waiver for the importation of eligible machinery and equipment for government-approved projects that are to be re-exported within a period of six months. However, the policy has recently been amended to allow initial approval for one year, with extensions available. Eligible machinery includes:

  • Aircraft.
  • Ships/vessels/boats.
  • Barges/pontoons/tugs for oil exportation or approved projects.
  • Dredgers for soil erosion projects or oil drilling operation.
  • Oil rigs and accessories.
  • Super cranes used for petrochemical construction/oil exploration and related projects.

As part of temporary entry requirements, the Nigeria Customs Service (NCS) may provide concessions to import on a temporary basis. Such concessions are normally granted for oil rigs, ships, barges, and other special equipment of high value (typically around $100,000), provided that such equipment is not available for purchase/rent in Nigeria and will be subsequently exported.

Temporary importation is not available for consumable items and most vehicles. For other commodities, importers need to obtain prior clarification from the Customs Head Office in Abuja.

The temporary importation approval from NCS must be obtained prior to shipment. Goods imported under temporary importation are exempt from both the Form M and pre-shipment inspection procedures.

Required documents for temporary import application:

  • Pro-forma invoice from the owner to the Nigerian importer, stating the cost and freight of the item(s) to be imported.
  • Lease Agreement between the owner of the equipment and the Nigerian importer, specifying the equipment, the lease period, lease cost, and other lease conditions.
  • Brochures and/or technical manuals describing the item(s) to be imported.
  • Copy of registration certificate (vessels & rigs only).
  • Copy of measurement certificate (vessels & rigs only).
  • Permit to operate in Nigerian waters from the Federal Ministry of Transport.
  • Photocopy of the complete contract(s) between the importer and the main contractor, clearly indicating the duration of the contract and providing information about the purpose of the equipment to be temporary imported. Contracts must establish the link between the signatories and GON.
  • Photocopy of importer’s Tax Clearance Certificate for three years.
  • Photocopy of importer’s Certificate of Incorporation.
  • Letter from importer addressed to Concessionary Logistics Limited authorizing the application for temporary importation on their behalf and stating the reasons for temporary importation.
     

Application for Temporary Importation

Upon receipt of the documents mentioned above, the freight provider issues an application to the Comptroller General of NCS in Abuja. A minimum bond amount is fixed by NCS headquarters and is indicated on the formal temporary importation approval letter. Following the submission of the temporary importation approval to the Customs Area Comptroller at the port of entry, the cargo will be physically examined, and the bond amount will be fixed as surety.

The process of applying for and getting approval for temporary importation continues to take a minimum of four weeks; however, ongoing digitization efforts are reducing processing times. Importers are encouraged to use the NCS digital portal for faster submissions and tracking.

Bond Security

Normally, the security amount or “bond penalty” corresponds with the customs duty, surcharge, and VAT payable upon normal importation, plus approximately 25%. The penalty can be assessed differently at the discretion of the Customs Area Comptroller. Prior to the release of the cargo by Customs, security for the customs duty must be provided through a bond issued by one of the banks designated for the collection of Customs duties. As of 2024, insurance bonds are now accepted in addition to cash deposits and bank-issued bonds, under revised NCS guidelines.

Duration of Temporary Importation

A temporary importation is approved for an initial period of one year and can be extended twice for six months. The maximum total period of a temporary importation is two years, and extensions beyond that period are granted by NCS on a case-by-case basis only for a further period of three or six months.

Required documents for request for extension of temporary importation:

  • Copy of agreement (addendum) jointly signed by contractor and sub-contractor specifying that the contract is still under execution and stating the duration of the contract. Note that variation of contract/service agreement will not be accepted.
  • Copy Form Sale 33.
  • Copy of initial temporary importation approval.
  • Copy of registration certificate (vessels & rigs only).
  • Covering letter to Customs applying for extension of temporary importation.
  • Letter from insurance or bank confirming validity of bond, and a copy of the bond to be attached.

Exportation

After the completion of the contract, cargo previously imported on a temporary basis must be re-exported. A bill of entry is prepared along with other export documentation. These documents will also be required for the cancellation of the temporary importation bond.
 

Change of Temporary Importation to Importation for Home Use

If cargo imported temporarily will remain in Nigeria permanently, approval from Customs Headquarters in Abuja is required. This approval must be obtained prior to converting the goods to permanent importation. Duty, surcharge, and VAT applicable at the time of importation will be payable at that point. This procedure also applies to items covered under temporary importation that have been scrapped.

Cancellation of Temporary Importation Bond

To cancel a temporary importation bond, the NCS will require evidence that the cargo has been either exported or Customs cleared for home use. If NCS is satisfied with the documentary evidence, the bond will be canceled with a letter from Customs to the bond-issuing bank, with a copy to the clearing agent.

As of 2024, cancellation processes can now be initiated online through the NCS Fast-Track Portal to streamline the procedure.

Non-Transferability of Temporary Importation

The importer in whose name the temporary importation was granted by Customs will always be held responsible for the full regularization or re-exportation of the equipment. Temporary importation remains non-transferable.

Nigeria currently prohibits the importation of 25 groups of items\). These include a range of food products, certain medicines, industrial products such as glass bottles and textile fabrics, and consumer products including footwear and furniture. The list of prohibited imports can be found on the Nigeria Trade Portal: Prohibited Items List.

The Central Bank of Nigeria (CBN) has maintained restrictions on access to foreign exchange for certain imports to promote local production and conserve foreign reserves. The timeline of notable restrictions includes:

  • 2015: The CBN restricted access to foreign exchange for importers of 41 items.
  • 2018: Fertilizers were added to the list of restricted items.
  • 2019: Textiles were added to the list.

While some restrictions remain, the CBN has lifted foreign exchange restrictions on several items, including: dairy products, rice, cement, vegetable oils, palm kernel, palm oil products, margarine, meat, processed meat products, and vegetables. In March 2023, the CBN lifted restrictions on sourcing foreign exchange for importing dairy products. Prior to this date, only six designated companies were permitted to source foreign exchange for this purpose. As of 2024, the dairy sector is open to broader participation, with no official restrictions on specific companies.