Nigeria experienced a remarkable surge in vehicle imports, witnessing an astonishing 226.46% increase from N325.05 billion in 2022 to N1.063 trillion in 2023, according to the National Bureau of Statistics foreign trade report for 2023.
The surge is particularly evident in the second quarter of 2023, where vehicle imports soared to N733.91 billion, constituting approximately 69% of the total imports for the entire year. This significant rise contributed to the overall spike recorded in 2023.
The breakdown of the quarterly figures reveals a fluctuating trend. In the first quarter of 2022, Nigeria’s total used vehicle import was N72.32 billion, which slightly decreased to N69.48 billion in the corresponding period of 2023.
However, the second quarter witnessed a substantial increase, with vehicle exports surging from N96.76 billion in 2022 to an impressive N733.91 billion in 2023.
The third quarter of 2023 saw a drop to N138.50 billion, compared to N90.77 billion in the same quarter of 2022.
For the last three months of 2023, Nigeria imported used vehicles valued at N121.82 billion, nearly doubling the value recorded in the same period of 2022 at N65.19 billion.
Despite notable advancements in the automotive sector in Nigeria, the country still falls behind developed nations.
The U.S. International Trade Administration reports a demand for 720,000 vehicles annually, whereas domestic production is limited to 14,000 units. This gap necessitates the import of the remaining vehicles to meet the growing demand.
While local production by companies like Innoson and Nord motors has increased, the elevated cost of production limits local demand, with most patronage coming from government and institutional sectors.
For many Nigerians, used car imports from the United States provide a more affordable alternative. However, elevated import duties and the depreciation of the naira have kept prices almost out of reach for the average citizen. Nigeria predominantly imports used vehicles from the United States, Qatar, and Europe.
Highlighting potential changes in government policy, the Director-General of the Nigerian Automotive Council recently revealed plans for a ban on the importation of used vehicles manufactured between 2000 and 2007 models into the country.
