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Why Are Imported Goods Excessively Expensive In Nigeria?

I have noticed that imported goods are extremely expensive in Nigeria? below is one of the basic analysis that triggers this question.

A 2000/2001 HONDA ACCORD AKA (babyboy) motor car in Nigeria is around 1.5 million naira,  and that's even cheap.

This is just one example out of many, similar thing applies to computer importation and other valuable products that Nigeria as a whole could benefit from.

First my exchange rate convertion is xe.com, so my calculation is based on the exchange rate at the time of my posting!

Now in the UK this car only worth about £975. So let's follow the illustration below;

Car Purchased in UK               = £975.00  about (230,000 Naira)

Exportation  Cost                   = £250.00  about (  59,000 Naira)

Clearance Cost in Nigeria       = £852.00  about (200,000 Naira)

Profit                                      =

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TOTAL                                      = £2,077  about (489,000 Naira)

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So back to the alarming figure 1,500,000 Naira - 489,000 Naira =1, 011, 000 Naira[color=#990000][/color]

(1) So what happens to the 1, 0011, 000 Naira excess?

(2) Are there other hidden charges we do not know about or is this the profit car dealers make generally in Nigeria?

(3) If the excess here is the profit how many common fellow citizen have the chance of owning a car?

May be my analysis is wrong, someone please put me right!

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17 answers

95% of materialistic things in naija are imported and that's my estimate. Very sad for a nation where everyone thinks they know alot. Is because of too much bragging and no inspiration to work together coupled with the lack of basic infrastructure needs and many more. Those countries we import from were at one point in their history lacking all their stuffs today but the differece btw us and them is dat they persisted and made it a success through trials and errors. Is only right we suffer the brunch of our incompetence and the ignorance/ lack of vision that encompasses most of the nation be it in accountability, infrastructure, knowledge, dedication, patriotism, relationship with other nations in Africa and in diaspora etc. Is until we are ranked the 53rd out of 54th in African economy that we would be able to sit up and I still doubt it cuz they will be something to blame it on.

Nevertheless, MAY GOD DELIVER NIGERIANS AND AFRICANS AT LARGE FROM THE DESTRUCTION OF IGNORANCE.

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Dear Jafour

The list of cars Dashboard, I'm looking for includes, VW passat1997-2000,Rover 75.1998-2000,Rover600 1997-1999, BMW 3series,1995-1998 ,Honda accord V tec 1997-1999.

Thanks.

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Na true word u talk my broda! If dem go gree subsidise or give special grants to those wey go put in the effort to manufacture in an environmentally and economically sound way, peeps go do am! It's not rocket science (as my uncle used to say). Shoo! If dem gi me grant I go leave jando go Naija become farmer! Wetin I dey do 4 here? Burger morning! Burger afternoon! Burger evening! Nonsense!

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well, don't use uk cars as an example because those cars are very cheap and we don't need right hand in Nigeria, well in Germany here the babyboy cost 5,500 Euro to 6,000 which is already more than one Million Naira, and the shipping is 600 Euro and clearing 2000 Thousand Naira so the different is just Two Hundred Thousand Naira , excluding phones calls stress and everything then just say the dealers are making 150,000 out of it .

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I think guys are just desperate to make more bucks, simple

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U guys ever heard of the word "dumping"?

imported goods can sell at less than the price of same good in the domestic country, its possible!

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*Repeated post* sorry oh.

Great post. You've hit on something that should be obvious, but somehow most people are not aware of: There is big money in trading (importing and exporting, clearing, forwarding and backwarding, etc. )

Whether its in used cars or new clothes from China (Bulk importation of shirts from China is BIG Business. Those "cheap" N700-N1k shirts in the market actually have a total cost of like N200. The reason they are so expensive here is that its a relatively well-kept secret amongst traders. You import something for Npeanuts and sell it for a lot more because no-one knows better.

Personally, if I want something: from a laptop to a "tokunbo" car I've realised the best thing is to get it myself. You just need a close relative (or very tight pal) overseas and a "friend" in customs. You save a lot and if more people do it the price of imported goods should be forced down to the correct market price.

Its a bit stressful though (worrying, calling, tipping and harassing). The overhead is a bit more than what the original poster listed. Everyone has a bit of stress so I guess thats why the traders charge so much on top and why some people just buy the damn thing here without all the wahala. I wouldn't do it for a living because I'd feel a bit guilty about the mark-up. But if I did, I think I'd make a lot of money.

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Great post. You've hit on something that should be obvious, but somehow most people are not aware of: There is big money in trading (importing and exporting, clearing, forwarding and backwarding, etc. )

Whether its in used cars or new clothes from China (Bulk importation of shirts from China is BIG Business. Those "cheap" N700-N1k shirts in the market actually have a total cost of like N200. The reason they are so expensive here is that its a relatively well-kept secret amongst traders. You import something for Npeanuts and sell it for a lot more because no-one knows better.

Personally, if I want something: from a laptop to a "tokunbo" car I've realised the best thing is to get it myself. You just need a close relative (or very tight pal) overseas and a "friend" in customs. You save a lot and if more people do it the price of imported goods should be forced down to the correct market price.

Its a bit stressful though (worrying, calling, tipping and harassing). The overhead is a bit more than what the original poster listed. Everyone has a bit of stress so I guess thats why the traders charge so much on top and why some people just buy the damn thing here without all the wahala. I wouldn't do it for a living because I'd feel a bit guilty about the mark-up. But if I did, I think I'd make a lot of money.

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Ibo guys are fairly used cars, na only God know who go die first.

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Perhaps if the goods were made in Nigeria, they wouldn't be so expensive

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Dear Erico2k2

Please list the cars dashboard that you are interested in. Presently, I have a left hand drive 2000 Toyota Camry dashboard for sale. You may wish to contact me in Canada on 6479893275, e-mail bellin_int@yahoo.ca or contact Saheed in Nigeria on 08056261318.

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Guys, I'm stating the Actual price to ship a Vw passat from London to Cotonau as the cars is 1998 model, its costing £550 aasat this time, I have been doing this for some time now so I know what II'mtalking about, its good for biz as RHD cars in the UK are very cheap ie £1100-£1500 for a VW passat 1997-1999 Manual/Auto, at the moment its costing too much to buy the Dashboard in Nigeria for the convertion, cost of clearing at the Port of Cotonau is 500k CEFAS aprapprox00 or 130K naira, and roughly40K to cross it into Nigeria, if you get an 8yrs old car or less than that age into Nigeria you looking at 220K-250K to clear it at Lagos port, Thats correct facts by guys, well back to my old request, any guys wanna do Dashboard biz, dontdon'titate to contact me

one love

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When things are priced low to undercut the market in Nigeria people assume you have fake goods. You cant win can you?

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Supply and Demand, introductory microeconomics. If people are willing to pay above the market price, then so be it,

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Hello Brownbonno,

I think you shed a heavy beam of light through your answer to that question. The only thing I was considering was the outrageously low Exportation Cost of 250GBP.

Someone in Nigeria who needed to receive a laptop from his daughter in the Rep. of Ireland said DHL required about 97 euros to get that done. In proportion to the export of a vehicle, I also agree with you that that amount is not realistic.

To Your Success

David

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I'm not sure about your figures but if you're confident

they are right, then you have a money maker on your

hands.

Rather than moan, I suggest you go for the "killing" as

well.

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Profit motive in Naija is high so traders tend to go for a kill.

Your costing for a y2k honda is on the low side. A good y2k+ car is well above 4000 Euro ie well above £3000

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