Cost Of Clearing Cars In Nigeria 2023
In the year 2023, we can all look forward to the rate of car registration increasing drastically in Nigeria, as the Federal Road Safety Corps (FRSC) is set to start clearing cars in Nigeria as a way of making more money.
However, the question on everyone’s lips is: how much will it cost to clear a car in Nigeria in 2023? We take a look at the details behind this upcoming legislation and what it will mean for car owners and drivers in Nigeria.
About Clearing Cars In Nigeria
In Nigeria, clearing cars is a term that can be used to describe the act of removing abandoned vehicles from public roads.
This process is regulated by federal law, which only permits a car to be removed if it has been reported abandoned for at least one month. One must first obtain a permit in order to clear any car and they may be cleared on the weekends when traffic volumes are reduced. Fees vary by location but can range anywhere from $50-$120 USD. Cost Of Clearing Cars
According to Accra Report, clearing cars in Lagos is said to cost around ₦10,000 ($40 USD) while some significant streets have been earned at a cost of N10m ($43,500 USD). In Ibadan, however, Accra report quoted an official clearing cars fee of ₦100k ($420 USD) for a two-week clearance.
According to multiple reports, about ₦3 trillion ($12.5 billion USD) is needed yearly maintenance of our roads. Due to insufficient funds, many Nigerian streets are damaged and in an abandoned state with some areas having more than 40 percent of roads damaged. Cost Of Clearing Cars
Due to funding shortages, traffic congestion has worsened in Nigerian cities. Clearing cars reduces traffic and allows the movement of emergency vehicles such as ambulances and fire trucks. Because damaged roads are also dangerous, clearing cars also make travel less risky because citizens may not always notice damaged sections of roads until it is too late.
In Nigeria, clearing cars is a term that can be used to describe the act of removing abandoned vehicles from public roads. One must first obtain a permit in order to clear any car and they may be cleared on the weekends when traffic volumes are reduced.
Firms may be fined up to ₦1 million ($4,200 USD) for attempting to remove abandoned cars without first obtaining a permit or for using heavy machinery without permission from the relevant authorities.
The Federal Ministry of Environment has put into place guidelines outlining the procedure firms should follow when undertaking road clearance projects.
The three scenarios you should know about
1: You buy a car from a dealership and don’t have it cleared
The cost for this would depend on the model of the car and where you purchase it from.
2: You sell your car to a used-car dealer and they don’t clear it
You may lose money if the dealer doesn’t offer enough to cover the costs of clearance.
3: You sell your car yourself and choose not to clear it before sale. It’s up to you how much you’re willing to sacrifice because there is no guarantee that the buyer will go through with clearing the car, but there are always risks when buying a secondhand vehicle.
The cost of clearing (or selling) a car at NPFL from 2002 to 2023
The cost of clearing cars in Nigeria is a concern for many buyers. Between 2002 and 2023, the NPFL wholesale market for cars increased by an average of $284 per year, but the prices are not always advertised at car auctions.
The manufacturer’s suggested retail price is a good indicator to help set expectations, but it doesn’t account for maintenance costs, fuel efficiency, depreciation, or financing expenses, so this number can be misleading. A vehicle with a high trade-in value might have such low mileage that the depreciation will be lower than the NPFL wholesale price would suggest.
For example, if you sell your old Toyota Camry (the model year 2011) after 3 years (76,000 miles), its trade-in value might only be worth $5,000 while the NPFL wholesale price of that same vehicle could be as high as $9,900 depending on condition.
You should also consider how much time and money you will spend maintaining your vehicle before selling it. After 5 years (120,000 miles), most vehicles need brake work; tires need a replacement; fluids should be flushed; belts need tightening; transmission fluid needs changing, etc.
A full service typically ranges from $200-$500. To offset these costs, it’s important to negotiate a higher purchase price when buying a car.
How much does it cost to clear a car from the Nigerian port?
The cost of clearing a car from the Nigerian port is different depending on the age and make of the car. It usually costs NIT 8,000 (Around $70) to clear a car up to ten years old, and it usually costs NIT 14,000 (Around $117) to clear a car over ten years old.
However, as this amount changes over time we recommend that you visit your nearest Nigerian Customs office for the most recent information on current clearance rates.
How much is a customs duty for cars in Nigeria?
Custom duty for cars in Nigeria is about 30%. It varies depending on the type of car and quality. Cars will also be checked to ensure they are roadworthy.
For example, if a tire is low or a brake pad needs replacing, you will have to fix these problems before you can continue with your journey. Otherwise, your vehicle may not pass the inspection and you’ll have to take it back home or pay a large fee.
How is import duty on cars calculated in Nigeria?
Import duty is calculated by the Customs Department. When you import cars, you need to know that the value of the car will be calculated by a percentage of what it costs new in your country.
Therefore, if you are importing a new vehicle for $20,000 USD then the import duty for this car would be 25% or $5,000. There are also special taxes that may apply on luxury vehicles depending on their engine size and other specifications.
This is just a short overview of the cost of clearing cars in Nigeria. This varies depending on the license you need and the year, make, and model of the car. The pricing for used cars will be cheaper than for new ones. You can also get free quotes from some companies online before going to them to have your car cleared.