The total value of Nigeria’s used vehicle import increased significantly from N325.05 billion in 2022 to N1.063 trillion in 2023- marking an increase of 226.46% over a one-year period.
Between 2022 and 2023, the value of used vehicle imported into the country jumped by N736 billion compared to what was recorded in 2022. This is according to the National Bureau of Statistics (NBS) foreign trade report for 2023.
The significant rise recorded in 2023 can be attributed to the huge increase in vehicle imports for Q2, 2023 at N733.91 billion representing about 69% of total imports for the year 2023.
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For Q1 2022, Nigeria total used vehicle import stood at N72.32 billion, this figure decreased to N69.48 billion in the year under review.
However, in the second quarter of the 2023, there was a hike in vehicle exports from N96.76 billion recorded in 2022 to N733.91 billion.
In the third quarter of 2023, this figure dropped to N138.50 billion while that of the corresponding quarter of 2022 stood at N90.77 billion.
For the last three months of 2023, Nigeria imported used vehicles valued at N121.82 billion. This was almost double the value of vehicle import recorded in the same period of 2022 at N65.19 billion.
What you should know
The automotive sector in Nigeria has seen notable development recently, yet it remains behind those in developed countries. The U.S. International Trade Administration reports that Nigeria requires 720,000 vehicles annually, but domestic production is limited to 14,000 units, necessitating the import of the remaining vehicles to meet demand.
- Nigeria has seen increased local production of automobiles in the past few years with Innoson and Nord motors but increased cost of production stifles local demand with patronage mostly from governments and institutions.
- For most Nigerians, used car imports from the United States presents a more affordable alternative. However, elevated import duties and depreciation of the naira have kept prices almost above the reach of the average Nigerian. Nigeria mostly imports used vehicles from the United States, Qatar and Europe.
- The Director-General of the Nigerian Automotive Council recently stated that the federal government is planning a ban on the importation of used vehicles of year 2000 to 2007 model cars into the country.
