A Corolla, once considered an entry-level car, is now becoming an unaffordable luxury
Nigeria’s new four per cent Free-On-Board (FOB) customs levy, introduced on August 4, has sparked concern among importers, freight agents, and auto dealers. Stakeholders warn the policy could increase vehicle clearing costs by up to 40 per cent, turning car ownership into a luxury for many Nigerians.
Dealers note that cars like the Toyota Corolla, Honda Civic, and Accord now cost between N6 million and N9 million, up from under N3 million just three years ago. One observer remarked, “Only people who can pay for high-end vehicles are still in the market. A Corolla is now becoming an unaffordable luxury.”
Freight forwarders question the rationale behind the levy. Taiwo Fatomilola stated, “It’s like substitution by elimination, nothing has changed. It still feels like the same eight per cent is being collected under a different name.” Eugene Nweke added, “Without a doubt, the four per cent FOB levy can be considered a burden to the shipper.”
Importers are reportedly shifting toward luxury vehicles, with affordable used cars increasingly priced out of reach.