Nigeria’s overall used vehicle import value climbed dramatically from N325.05 billion in 2022 to N1.063 trillion in 2023, representing a 226.46% rise over one year.
Between 2022 and 2023, the value of old vehicles imported into the country increased by N736 billion from 2022, according to the National Bureau of Statistics (NBS) foreign trade statistics for 2023.
The enormous increase in 2023 can be traced to a massive surge in automobile imports during Q2, 2023, which totaled N733.91 billion, accounting for almost 69% of overall imports for the year.
For the first quarter of 2022, Nigeria’s total used vehicle imports were N72.32 billion, down from N69.48 billion the previous year.
However, in the second quarter of 2023, car exports rose from N96.76 billion in 2022 to N733.91 billion. This value fell to N138.50 billion in the third quarter of 2023, down from N90.77 billion in the same quarter in 2022.
For the last three months of 2023, Nigeria imported used vehicles worth N121.82 billion. This was nearly double the value of automobile imports recorded during the same period in 2022, which was N65.19 billion. Nigeria’s automotive sector has recently experienced significant growth. However, it still lags behind that of wealthy countries.
According to the US International Trade Administration, Nigeria requires 720,000 vehicles each year, but domestic manufacturing is restricted to 14,000 units, necessitating imports of the remaining cars to meet demand.
Nigeria has experienced an upsurge in local automotive manufacturing in recent years with Innoson and Nord Motors. Still, the high cost of production stifles local demand, which governments and institutions mainly support.
For most Nigerians, importing secondhand cars from the United States is a more economical option. However, high import levies and the naira’s depreciation have kept costs nearly out of reach for the typical Nigerian. Nigeria primarily imports secondhand vehicles from the United States, Qatar, and Europe.
The Director-General of the Nigerian Automotive Council recently indicated that the federal government intends to prohibit the importation of secondhand vehicles manufactured between 2000 and 2007.
