Hardship: Nigerian-used car market booms as more owners sell off private vehicles

Nigerian-Used Car Market Sees Historic Boom as Economic Hardship Forces More Owners to Sell

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Rising costs and import tariffs are making Nigerian-used cars the preferred choice for local and foreign buyers

Soaring living costs, high exchange rates, and increased import tariffs are transforming Nigeria’s car market. As foreign-used vehicles — popularly known as Tokunbo cars — become unaffordable for many, locally owned pre-owned cars are taking center stage. Dealers, private sellers, and online marketplaces report unprecedented activity as Nigerians offload their vehicles to cope with economic hardship.

Foreign-Used Cars Price Out Buyers

Industry data shows that the cost of foreign-used vehicles has doubled or tripled within the last year, driven by a weak naira and heavy import duties. The newly introduced 4% Free On Board (FOB) levy — replacing the former 1% Comprehensive Import Supervision Scheme (CISS) charge — has further raised costs.

According to the Nigerian Customs Service, the FOB levy is intended to modernize operations and fund digital clearance systems like the B’Odogwu platform. However, for buyers, it has meant higher prices across the board... Read complete content click link below

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Foreign Buyers Flood Nigerian Market The surge in Nigerian-used car sales isn’t limited to local buyers. Dealers in Sokoto, Lagos, and other cities confirm an influx of customers from Niger Republic, Benin Republic, and Cameroon. The stronger West African currencies give these foreign buyers more purchasing power, making Nigerian-used cars a bargain compared to prices in their home countries. Popular choices include Toyota Corolla, Camry, Sienna, and Lexus models.

Sharp Price Increases in Popular Models Dealers highlight staggering price jumps. For instance, a 2003–2006 Toyota once priced at ₦1.5m now sells for ₦8m–₦10m, while a Toyota Venza that cost ₦6m a few years ago can now reach ₦20m. With Tokunbo prices climbing so high, buyers are turning to locally owned vehicles, often in similar condition but far cheaper.

Car Swap Deals Gain Popularity

To keep sales moving, many dealers now offer swap deals, allowing customers to trade in their old cars and pay a smaller balance for another vehicle. This trend helps buyers upgrade without paying the full inflated price upfront.

Economic Hardship Driving Sales

For many Nigerians, selling a car is no longer a choice but a survival strategy. Owners report selling vehicles to afford food, rent, or school fees. One seller noted selling his Toyota Corolla for ₦4m simply to meet family needs, while others admitted they no longer see vehicle ownership as realistic in the current economy.

Dealers Call for Locally Assembled Solutions

The Association of Motor Dealers of Nigeria (AMDN) is pushing for government and private sector collaboration to produce affordable, locally assembled cars. AMDN President Ajibola Adedoyin stressed that strengthening local manufacturing could stabilize prices, reduce reliance on imports, and create jobs. However, he also warned that the new import duty structure risks making vehicle ownership unattainable for most Nigerians.

Clearing Costs and Abandoned Vehicles

Customs agents and freight forwarders warn that higher clearing costs are leading to abandoned vehicles at ports, further tightening supply and driving inflation. They argue for exemptions on commercial and essential vehicles to ease the burden on the transport sector and the economy at large.

With the current trajectory, industry experts predict that unless local production ramps up and import tariffs are reviewed, vehicle ownership in Nigeria will increasingly become a luxury reserved for the wealthy.

Source: PunchNG

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