Here is why a brand new $450,000 Rolls-Royce Phantom VIII ultra-luxury sedan can cost up to $790,000 to own in Nigeria.
The Rolls-Royce Phantom 8 is specially designed to whisk the world’s wealthiest around in near silence.
The current Rolls-Royce flagship, the eighth-generation of the Phantom is currently one of the most luxurious rides money can buy and one of the most most exclusive cars on the planet.
In addition to boasting one of the most silent interiors, the Rolls-Royce Phantom VIII, dubbed the Mother of all flagships, also boasts one of the most silent car engines in the world.
Specially designed to whisk the world’s wealthiest around in near silence, the Rolls-Royce Phantom 8 starts at around $450,000. In Nigeria, though, buying this ultra-luxury ride can cost you nearly twice the MSRP price, no thanks to the most significant culprit which is exorbitant “Clearing Cost”, that has forced some into smuggling cars into the country.
Here’s how a brand new Rolls-Royce Phantom 8 luxury sedan that starts at $450,000 can cost around $790,000 to own in Nigeria.
For a brand new Rolls-Royce Phantom or any other new car, the surface duty (a significant component of the total clearing cost) is 70% of the vehicle’s price. The 70% clearing cost is the addition of the 35% import duty on imported vehicles plus an additional 35% levy. Kindly note that Nigeria Customs’ surface/import duties are currently calculated at an exchange rate of N405 to a dollar which is lower than that of the prevailing parallel market exchange rate at the time of this article which is N570 to a dollar.
An addition of surcharge, VAT and some other fees to the surface duty will give us what is called total duty. The total duty is the amount that will be credited to the Federal Government’s account. After that, you’ll pay shipping fees, terminal charges, clearing agent’s fees and other miscellaneous fees which will make up the “Total Clearing Cost” that will get the car out of the port. The total clearing cost is dependent on how well you’re able to negotiate a reduced duty.
All the listed clearing fees, the seller’s profit margin and freight cost to Nigeria would have increased the cost of the brand new car by up to 76% making a $450,000 brand new Rolls-Royce Phantom to cost up to $790,000 in Nigeria.
But the reality is that nothing influences the price of brand new Rolls-Royce Phantom 8 in Nigeria more than the 70% clearing cost.