Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 8/11/2017

Pricing is a key determinant of success in Nigeria and a major challenge for U.S. firms doing business in Nigeria due to two critical factors: low purchasing power of Nigerians and the availability of often more inexpensive alternate choices from Asian and North African suppliers.  Please note the Nigerian federal government charges a 5 percent VAT, while state governments also impose an additional 5 percent VAT.
 
Since the summer of 2015 (when the currency controls were implemented), distributors were forced to raise prices for imported commodities (especially food items like rice, spaghetti and cooking oil) significantly (in some instances up to 30%) due to higher exchange rates at the parallel market. 
As a result of the increase in prices, there is a shift in patronage on most foreign goods from Algeria and Libya.     

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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Nigeria Trade Development and Promotion Cost and Pricing