Understanding how to import a second hand excavator to Nigeria can set your business up for success. The country's construction market is experiencing rapid expansion, which generates a strong demand for reliable equipment like used construction machinery.
Nigeria's construction industry is projected to grow significantly, with some forecasts showing a Compound Annual Growth Rate (CAGR) of 6.4% from 2025-2029.
To start, you need to find a suitable cheap used excavator and inspect it thoroughly. After that, arrange for secure payment and gather essential documents, such as Form 'M' and a SONCAP certificate, to streamline the import process.
Phase 1: Finding the Right Used Construction Machinery
Define Your Project Requirements
Before you start your search, you must first define your project needs. This step ensures you buy the right machinery for the job. In Nigeria, excavators are essential for many tasks. Common projects include:
Road construction and maintenance
Digging trenches for pipes and cables
Managing drainage systems
Knowing your specific tasks helps you choose the correct excavator size and capabilities. This prevents you from overspending on a machine that is too large or buying one that is too small.
Research Reputable Suppliers
Finding a trusted used excavator supplier is crucial for a successful purchase. You should vet potential sellers carefully to avoid problems. Look for suppliers with a strong business reputation and positive client feedback. A good supplier will also understand international shipping and Nigerian customs regulations. For example, some companies specialize in providing quality earthmoving solutions, while others can help you buy a used CAT excavator from the U.S. and manage the logistics.
When you evaluate a supplier, consider these points:
Check Reviews: Look for testimonials and case studies from other buyers.
Verify Expertise: Ensure they have experience shipping heavy equipment to Nigeria.
Assess Support: Ask about their after-sales service and parts availability.
Find a Cheap Used Excavator That Meets Standards
Your goal is to find a balance between price and quality. A cheap used excavator can save you money, but it must meet performance standards. Different brands have different price points. For instance, a used CAT excavator often has a higher initial cost than some other brands.
Tip: Always compare prices from multiple sellers for the same model. A lower price might reflect higher hours or a need for repairs, so investigate thoroughly before you decide to buy.
A thorough inspection is non-negotiable. This step confirms the second hand excavator is in good working condition and ready for your projects.
Conduct a Thorough Machine Inspection
You must inspect any second hand excavator before you buy it. This step confirms the machine's condition and prevents future problems. If you cannot inspect it yourself, hire a qualified mechanic.
Start with a systematic check of the main components. You should examine these key areas:
Engine and transmission
Hydraulic system and pumps
Undercarriage components
Cab and controls
Boom, stick, and bucket
Swing bearing and gear
Pay close attention to the hydraulic system and structural parts. A detailed inspection of a used cat excavator includes these checks:
Hydraulic System: Look at all hoses for leaks or bulges. Check the cylinders for damage. Verify the hydraulic fluid is clean and at the correct level.
Structural Integrity: Inspect the boom and stick for cracks or poor welds. Check the main frame for any damage. Ensure all pins and bushings fit tightly.
Finally, perform a functional test. Start the engine and listen for strange noises. Move the arm and bucket to test the hydraulic controls. Make sure all lights and gauges in the cab work correctly.
Verify Ownership and Maintenance History
After the inspection, you need to verify the machine's history. This protects you from legal issues and gives you insight into its past care. Ask the seller for all maintenance records, service logs, and repair invoices. These documents show how well the previous owner maintained the machinery. A well-documented used cat excavator is often a safer investment.
Pro Tip: Always request the excavator's serial number. You can use it to check for any outstanding loans or reports of theft. This simple step can save you from major headaches later.
Reviewing these documents helps you understand the true condition of a cheap used excavator. A complete history gives you confidence in your purchase and helps you plan for future maintenance needs.
Phase 2: Calculating Total Costs and Securing the Deal
After finding the right machine, your next step is to calculate the total cost and finalize the purchase. This phase is critical for managing your budget and protecting your investment.
Negotiate the Final Purchase Price
Negotiation is your opportunity to get the best possible price. When you prepare to buy a used cat excavator, a good strategy can save you a significant amount of money. You should approach the seller with confidence and clear information.
Effective negotiation tactics include:
Do Your Research: Know the market value for the specific model. Show the seller price comparisons you found online.
Ask Detailed Questions: Inquire about the machine's history, maintenance, and any recent repairs.
Stay Patient: Do not feel pressured to make a quick decision. A serious seller will respect your need to evaluate the deal.
Be Polite but Firm: A friendly attitude helps build a good relationship, but you must remain firm on getting a fair price.
Use Secure Payment Methods
Protecting your funds during an international transaction is essential. You should never send cash or use unverified payment platforms. Instead, use secure methods that offer protection for both you and the seller.
A Letter of Credit (LC) is one of the most secure payment tools for international trade. Your bank promises to pay the seller once they provide documents proving the equipment has been shipped as agreed. This protects you because no payment is made until the seller meets their obligations. Escrow services are another great option, holding your payment until you confirm receipt of the goods.
Get Quotes for Shipping to Nigeria
The final major expense to consider is shipping. The cost of shipping to nigeria can vary widely based on the shipping method, port of origin, and the size of the excavator. You should request quotes from several freight forwarding companies to compare prices and services. When you buy a used cat excavator, ask the shipping company if they have experience transporting heavy machinery to Nigeria. This ensures they understand the documentation and port procedures, which helps prevent delays.
Factor in Marine Insurance Costs
You must protect your excavator during its long journey to Nigeria. Marine insurance is not an optional expense; it is an essential safeguard for your investment. International shipping involves many risks. Your machine could get damaged during loading, face rough seas, or even be lost. Without insurance, you would bear the full financial loss.
Your freight forwarder or shipping company can typically arrange marine insurance for you. The insurance policy protects your excavator against various potential problems. Common coverages include:
Damage from accidents at sea
Theft or non-delivery
Damage during loading and unloading
Loss due to fire or sinking
Pro Tip: Always ask for an "All-Risk" insurance policy. This type of policy offers the most comprehensive protection. It covers all potential risks unless they are specifically excluded in the policy document. Read the terms carefully to understand exactly what is covered.
The insurance premium is a small but vital part of your total budget. The final cost is usually calculated as a percentage of the excavator's value plus the shipping fees. This small investment gives you peace of mind. It ensures you are financially protected from the moment the machine leaves the supplier until it arrives safely at the Nigerian port. Make sure you receive a formal insurance certificate as proof of coverage before the shipment departs. This document is critical if you need to make a claim later.
Phase 3: Understanding Nigerian Import Duties and Regulations
Navigating the financial side of importing is a critical step. You must understand the various import duties and regulations to create an accurate budget. This knowledge helps you avoid surprise fees and ensures a smooth customs process. The total cost of your excavator will increase significantly after these taxes and levies are added.
Calculate Import Duty on Heavy Equipment
The Nigerian government sets the import duty for heavy equipment. This duty is a percentage of the excavator's total value, which includes the machine's price and shipping fees. The rate can change, so you should always verify the current percentage.
Here is a general breakdown of taxes for Nigeria:
Country | Import Duty (%) | VAT (%) | Extra Fees |
|---|---|---|---|
Nigeria | 5-20% | ECOWAS Levy (0.5%) |
Note: The exact duty percentage depends on the specific Harmonized System (HS) code for your excavator. Your clearing agent can help you confirm the correct rate.
Account for the 7.5% Value Added Tax (VAT)
You must also pay a Value Added Tax (VAT) on your imported excavator. The current VAT rate is 7.5%. This tax applies to most goods imported into the country.
The VAT calculation is based on a cumulative value.
VAT is calculated on the total value of the excavator.
This total value includes the import duty you already paid.
Industrial machinery like excavators are common items subject to this tax.
Properly accounting for VAT is essential for your budget. It is a significant expense you cannot overlook.
Budget for Port Levies and Surcharges
Beyond import duty and VAT, you will face other charges at the port. These fees cover various administrative and handling services. You should budget for an ECOWAS Levy, which is typically 0.5% of the machine's value. You may also need to pay a Port Development Surcharge and other terminal handling fees. Your clearing agent will provide a detailed list of these charges.
Estimate Local Clearing and Transport Fees
Your budget needs to include the final costs inside Nigeria. These local fees cover getting your excavator from the port to your worksite. A licensed clearing agent manages this entire process for you. Their professional fee is a key part of your local expenses.
The agent's fee is not just for one task. It covers a wide range of services required to release your machine. These services often include:
Submitting all documents to customs officials.
Managing the physical inspection of your excavator.
Paying all official port charges on your behalf.
Handling any unexpected issues that may arise.
Pro Tip: Always ask your clearing agent for a detailed, itemized quote. This document should list every single fee, from their service charge to small administrative costs. This transparency helps you avoid surprise bills.
After clearing customs, you must transport the excavator to its final destination. This is called haulage. The cost of haulage depends on several factors. The distance from the port to your site is the biggest factor. The size and weight of your excavator also affect the price. You will need a special low-bed truck for this job.
Get quotes from several transport companies to find a competitive price. Your clearing agent can often recommend reliable haulage services they have worked with before. Factoring these local clearing and transport fees into your budget is the final step. It ensures you have a complete financial picture for importing your second hand excavator.
Phase 4: Managing Documentation for Shipping to Nigeria
Proper paperwork is the key to a smooth import process. You must manage all your shipping and customs documentation carefully to avoid delays. This phase ensures your excavator has all the necessary approvals for shipping to nigeria.
Initiate Form 'M' Through a Nigerian Bank
You must get a Form 'M' before you can import any goods into Nigeria. This is a mandatory declaration document. You will apply for it online through your bank.
The process generally follows these steps:
You submit the Form 'M' application online to your bank. You must attach documents like the seller's initial bill (pro forma invoice) and your insurance certificate.
Your bank reviews your application and sends it to the Nigeria Customs Service (NCS).
The NCS will approve or reject your form within one business day. If rejected, they will explain why so you can make corrections.
Once the form is approved, you can tell your supplier to prepare the excavator for shipment.
Obtain the SONCAP Certificate for Compliance
Your excavator must meet Nigerian quality and safety standards. The Standards Organisation of Nigeria (SON) confirms this with a SONCAP certificate. This is a pre-shipment requirement, meaning you must get it before the excavator leaves the supplier's country.
The SONCAP certificate proves that your used excavator has been inspected and complies with the country's import rules. Your supplier will typically handle the inspection process to obtain this certificate for you.
Without a valid SONCAP certificate, your machine will be rejected at the port. This can lead to costly fines or even force you to ship the excavator back.
Gather Essential Shipping Documents
You need a complete set of documents to clear customs. Your supplier and freight forwarder will help you gather these papers. Make sure every detail is accurate.
Your essential shipping documents should include:
A description of the excavator, including its value and quantity.
The machine's total weight and dimensions.
Your information and the seller's information.
A unique tracking number (Bill of Lading number).
Details about lifting points and the center of gravity for safe handling.
Choose Your Shipping Method: RoRo vs. Container
You have two main options for shipping your excavator: Roll-on/Roll-off (RoRo) or container shipping. Your choice depends on your machine's size, your budget, and your preference for protection.
RoRo shipping is often the simplest method for heavy machinery. With this option, the excavator is driven directly onto the vessel, almost like a car ferry. This method is cost-effective because it requires less handling and no crating. However, the machine is exposed to the marine environment, though modern ships offer covered decks.
Container shipping provides more protection. Your excavator, or its dismantled parts, is loaded into a standard shipping container. This shields it from weather and potential damage during transit. This method may require dismantling the excavator to fit, which adds complexity and cost.
This table compares the two methods:
Feature | RoRo Shipping | Container Shipping |
|---|---|---|
Loading Process | Simple drive-on, drive-off process. | Requires cranes and complex handling. |
Protection | Exposed to the marine environment. | Offers superior protection from weather. |
Cost-Effectiveness | Generally more cost-effective for heavy machinery. | Can be more expensive due to handling and packing. |
Machine Size | Ideal for large or oversized machinery. | May require dismantling the excavator to fit. |
Hire a Freight Forwarder
You should not manage international shipping alone. A freight forwarder is a logistics expert who acts as your agent. They handle the complex details of moving your excavator from the supplier to the Nigerian port. Hiring a professional simplifies the entire process of shipping to nigeria and helps you avoid costly mistakes.
A reliable freight forwarder provides many essential services. Look for a company that offers:
Experience with handling oversize loads and heavy equipment.
Custom shipping solutions tailored to your needs.
Assistance with customs clearance procedures.
Port-to-port and door-to-door delivery options.
A global tracking system to monitor your shipment.
Transparent pricing with no hidden fees.
Pro Tip: Choose a freight forwarder with proven experience in the Nigerian market. They will understand the specific port requirements and customs processes, which prevents delays and ensures your excavator arrives on schedule.
Your forwarder will coordinate with the supplier, the shipping line, and your clearing agent. This creates a seamless link between all parties involved in your import.
Phase 5: The Nigerian Customs Clearance Process
Once your excavator arrives at the port in Nigeria, you must navigate the Nigerian customs clearance process. This phase requires careful attention to detail and professional assistance to release your machine without costly delays.
Hire a Licensed Customs Clearing Agent
You cannot handle customs clearance on your own. You must hire a licensed customs clearing agent. This professional is registered with the Nigeria Customs Service and acts on your behalf. They have the expertise to manage the entire process smoothly.
A good clearing agent handles many critical tasks for you:
They classify your excavator using the correct Harmonized System (HS) code.
They calculate and pay all customs duties and port levies.
They prepare and submit all necessary documents, including your Form 'M' and Bill of Lading.
They manage the physical customs inspection and coordinate with port officials.
They liaise with the shipping line to secure the final release of your machine.
Submit Documents for PAAR Generation
Before your excavator arrives, your agent needs a Pre-Arrival Assessment Report (PAAR). This document is essential for customs to calculate the duties you owe. The PAAR generation process follows a clear path.
Your supplier sends the final shipping documents to your bank after the excavator ships.
Your bank uploads these documents to the official customs portal.
The Nigeria Customs Service reviews the documents and issues the PAAR.
Your bank then gives the PAAR and other shipping documents to your agent.
This report is the key to starting the Nigerian customs clearance and is required before you can buy and import your equipment.
Prepare for Physical Customs Examination
Customs officials will physically inspect your excavator. This examination confirms that the machine matches the information in your documents. Your agent will manage this inspection for you.
During the examination, customs officers will verify your paperwork, assess the excavator's value to ensure it is not understated, and physically check the machine's serial number and condition. Any differences between your documents and the actual machine can cause major delays.
Being prepared with accurate paperwork is the best way to ensure this step goes smoothly.
Settle Final Payments with Customs
After the customs examination is complete, you must settle all official payments. Your clearing agent will manage this crucial step for you. The Nigeria Customs Service provides a final assessment detailing all the required fees. Your agent uses this document to make the payments on your behalf. You should ensure every payment is made promptly to avoid accumulating extra storage charges.
The total amount you pay includes several different fees. Your agent will provide you with a breakdown of these costs. The main payments you need to cover are:
Import Duty: The primary tax based on your excavator's value.
VAT Payment: The 7.5% Value Added Tax applied to the total cost.
Terminal Handling Charges: Fees for the services provided by the port operator.
Port Wharfage Charges: A fee for using the port's wharf facilities.
Storage Charges: Costs that apply if your excavator is not cleared from the port within the free time allowed.
Your agent will pay these fees directly into the designated government accounts. Always ask for official receipts for every transaction. These receipts are your proof of payment and are essential for your records.
While your excavator will likely incur duties, you should know that the government sometimes provides exemptions. Certain categories of imports, such as essential goods, raw materials, and capital goods, may be exempt from import duties under specific policies. Your agent can advise if any current incentives apply.
Once customs confirms receipt of all payments, they will process the final release of your excavator. This action moves you one step closer to getting your machine to your worksite.
Phase 6: Final Steps to Import a Used Excavator to Africa
You have almost completed the process to import a used excavator to Africa. This final phase covers getting your machine from the port to your worksite. Careful management here ensures your equipment is ready for operation without any last-minute issues.
Obtain the Terminal Delivery Order (TDO)
You need a Terminal Delivery Order (TDO) to move your excavator out of the port. Your clearing agent obtains this document for you. The agent first pays all shipping line and terminal operator charges. After payment, the shipping company issues a Delivery Order. Your agent then takes this document to the terminal operator to get the final TDO.
The terminal operator will only issue the TDO after confirming all payments and customs releases. Your agent must present all required documents, including the Shipping Line Delivery Order and customs release papers, to get a 'Pre-Gate ticket' which leads to the TDO.
This final document gives you the authority to take possession of your machine.
Arrange Final Haulage from Port to Site
Next, you must arrange transport for your excavator from the port to your final destination. This service is called haulage. You will need a low-bed truck capable of carrying heavy equipment like a used cat excavator. Your clearing agent can help you find a reliable haulage company.
Haulage costs vary based on distance, road conditions, and security needs. Here are some sample costs for transporting construction equipment from Lagos:
Destination | Estimated Haulage Cost (NGN) |
|---|---|
Within Lagos | ₦250,000 – ₦400,000 |
Lagos to Abuja | |
Lagos to Port Harcourt | ₦700,000 – ₦1,000,000 |
Note: Prices can change due to fuel costs and seasonal demand. You may also face extra charges for armed escorts or crane assistance if needed.
Conduct a Post-Arrival Inspection
You should perform one last inspection when your second hand excavator arrives at your worksite. This check confirms the machine did not sustain any damage during shipping or haulage. It is your final opportunity to document its condition before putting it to work.
Your post-arrival inspection should include:
Checking for any new dents, scratches, or structural damage.
Verifying that all parts and components are present.
Inspecting the undercarriage and hydraulic hoses again.
Starting the used cat excavator to ensure it runs as expected.
This final check gives you peace of mind and confirms your investment is secure.
Successfully importing a second hand excavator to Nigeria depends on your careful planning. You must manage your research, finances, documentation, and customs processes with great attention to detail.
This detailed checklist helps you manage risks and avoid costly delays, ensuring your equipment is ready for operation upon arrival.
Your diligence through every phase is the key to a smooth import. This focus guarantees a successful journey from selecting a supplier to the final delivery of your machine.
FAQ
How long does it take to import an excavator?
The entire process can take several weeks to a few months. Shipping time is the biggest factor. You should also account for time needed for documentation, customs clearance, and final haulage. Proper planning helps you avoid unnecessary delays and keeps your project on schedule.
Are there age restrictions on used excavators?
Nigeria has regulations on the age of imported vehicles and machinery. You must verify the current rules before your purchase. Your clearing agent can confirm the maximum permissible age for your specific excavator model to ensure it qualifies for import.
What is the most important document I need?
Form 'M' is one of the most critical documents. You must obtain it from a Nigerian bank before the excavator is shipped. This form initiates the import process with the Nigeria Customs Service. Without it, your shipment cannot legally enter the country.
Why can't I clear customs myself?
Nigerian law requires you to use a licensed customs clearing agent. These professionals are registered with customs and understand the complex procedures. They manage all paperwork, payments, and inspections on your behalf, ensuring your import process is compliant and efficient.
