The latest ECOWAS Common External Tariff (CET) framework for 2022–2026 is being implemented in Nigeria, with adjustments to align with domestic fiscal policies and regional standards. The CET maintains five tariff bands:
- 0% on essential goods such as capital equipment and medicines.
- 5% on raw materials.
- 10% on intermediate goods.
- 20% on finished consumer goods.
- 35% for goods in sensitive sectors requiring protection.
Additionally, Nigeria applies supplementary measures like the Import Adjustment Tax (IAT), levying 2 percent on vehicles with engine capacities between 2,000–3,999cc, and 4 percent for those exceeding 4,000cc, while electric and locally manufactured vehicles, and mass transit busses are exempt. Prohibited items include specific environmentally harmful materials like dichlorofluoromethane from non-ECOWAS countries. Some import duty rates were reduced on critical items to support local manufacturing
Nevertheless, effective rates tend to be higher since the Nigerian government may apply additional charges (e.g., levies, excise, and VAT) on the imports. However, the total effective rate of each line item is not to exceed 70 percent. There are growing complaints from U.S. companies, including in the healthcare and processed foods sectors, regarding exorbitant registration fees and very long processing timelines with the National Agency for Foods and Drugs Administration and Control (NAFDAC). These issues are considered Technical Barriers to Trade (TBT) by the Office of Trade Agreements Negotiations and Compliance (TANC).
In a bid to protect local industries and grow several strategic sectors, especially agriculture, the Nigerian government has continued to restrict or place bans on certain imports. See section below on “Prohibited & Restricted Imports.”
Most goods destined for Nigeria, especially in the food, drug, and cosmetics, require inspection or certification from authorities or appointed third-party contractors. Because the government lacks the capacity to undertake inspections, testing, and reviews, clearance of imports is typically delayed to the detriment of the importer.
Local content laws are in place across sectors of the Nigerian economy. Originally introduced to ensure local participation in labor and across the value chain of the oil and gas sector, local content requirements have gradually begun to spread to other sectors such as information and communications technology (ICT) and advertising. Section 78 of the Corporate and Allied Matters Act (CAMA) provides that a foreign company intending to carry on business in Nigeria is obligated to incorporate a separate entity in the country before participating in any such business. A foreign company may not participate in any business or have a place of business or an address for service until it has incorporated a separate entity in Nigeria. Addresses for the receipt of notices and other documents for the purposes of incorporating an entity in Nigeria are permissible. There are, however, certain exemptions allowed under Sections 78 and 80 of CAMA for specific foreign entities, such as those engaged in specialist government-approved projects or export promotion activities. These exempt entities may operate as unregistered companies but are still required to file annual returns with the Corporate Affairs Commission (CAC)
The Nigerian government continues to implement various import substitution policies aimed at boosting local production and reducing reliance on imports. These include granting preference to domestic manufacturers, contractors, and service providers in public procurement. An Executive Order from 2017 mandates that at least 40% of government procurement spending on specific categories, such as pharmaceuticals, uniforms, and IT products, be directed toward locally made goods. In 2024, this directive aligns with Nigeria’s broader strategy to promote self-sufficiency in sectors like agriculture and manufacturing. Local content requirements now extend beyond oil and gas to industries like ICT and advertising, ensuring greater participation by Nigerian businesses.
Port infrastructure and operations remain a critical area for trade improvement. Despite historic inefficiencies, progress has been made. The completion of Lekki Port, Nigeria’s first deepwater port, has transformed maritime trade by handling large vessels and reducing congestion at older ports. Inland dry ports, such as the Dala Inland Dry Port in Kano State, are also enhancing trade across Nigeria and neighboring landlocked countries. However, issues such as inconsistent customs regulations, high costs, and lengthy clearance processes persist, underscoring the need for ongoing reforms to optimize port functionality and competitiveness:
- Uniforms and footwear
- Food and beverages
- Furniture and fittings
- Stationery
- Motor vehicles
- Pharmaceuticals
- Construction materials
- Information technology
As of 2024, the amendment to Nigeria’s Public Procurement Act of 2007, which was passed by the Senate in December 2019 to prioritize local goods and services, has yet to be fully enacted. The Act would compel ministries, departments, and agencies to show preference for local goods and services. The amendment is awaiting passage by the House of Representatives as well as assent by the President prior to its enactment. This amendment will likely be passed due to the national emphasis on local content and support for local industries.
In April 2022, the government of Nigeria reopened four additional land borders. Four others opened in December 2020. The government had closed land borders with Benin and Niger in 2019 to curb smuggling and the proliferation of illegal importation of drugs, small arms, and agricultural products. The government stated that the border closure was based on the governments of both Benin and Niger failure to adhere to the tenets of the ECOWAS CET. For more information and help with trade barriers please contact:
International Trade Administration
Enforcement and Compliance
(202) 482-0063
ECCommunications@trade.gov