By; Sunday Gift Chineye
Nigerian-Used Cars Gain Foreign Buyers as Prices of Imported Vehicles Soar
Soaring living costs, high exchange rates, and rising import tariffs are driving foreign-used cars beyond the reach of many Nigerians, fuelling a surge in demand for locally used vehicles.
Findings show that more private owners are now listing their cars for sale on online platforms, social media, and roadside lots, while foreign buyers, particularly from neighbouring countries, are increasingly turning to Nigeria for better deals.
Car dealers say prices of imported vehicles, popularly called Tokunbo, have more than doubled in recent years due to the sharp depreciation of the naira and high import charges. A recent four per cent Free On Board levy introduced by the Nigerian Customs Service, replacing the former one per cent Comprehensive Import Supervision Scheme charge, has further pushed costs upward.
Comptroller-General of Customs, Adewale Adeniyi, said the new levy, backed by the Customs Act 2023, is aimed at funding operations and modernising clearance procedures, including the B’Odogwu cargo system.
In Lagos, a dealer in Nigerian and foreign-used cars, Nurudeen Amodu, said the situation has reversed old trading patterns.
“Before, we travelled to Cotonou and neighbouring countries to buy cars because our money had value. Now, they come to us because their currencies are stronger,” he said.
Amodu noted that foreign-used Toyota models (2003–2006), which once sold for about N1.5m, now go for between N8m and N10m. The Honda CR-V (2010) rose from N5m to N13m; the Lexus RX330 from N5m to N15m; and the Toyota Venza from N6m to nearly N20m.
Several dealers in Sokoto also reported increased patronage from Niger Republic buyers, attributing it to the strength of the Nigerien currency against the naira. Haruna Abubakar, who operates along Maiduguri Road, said foreign customers now outnumber local buyers.
In Lagos, another dealer identified as Sam said the Customs duty hike and high exchange rates have made foreign-used cars unaffordable. “Some people now sell their cars just to feed,” he said, citing a 2005 Toyota Corolla bought for N4m, while another similar model was listed for N5.2m due to the owner’s financial difficulty.
Dealers also reported sales to buyers from Benin Republic and Cameroon, where stronger currencies make Nigerian-used cars more attractive.
Amid the trend, the Association of Motor Dealers of Nigeria has called on the government to support local vehicle assembly as a way to reduce reliance on costly imports. Its national president, Ajibola Adedoyin, said affordable locally produced cars could help stabilise prices and create jobs.
Read Also: Massive Traffic Chaos as Multi-Vehicle Crash Shuts Down Kara Bridge, Leaves Thousands Stranded
“We are working with the National Automotive Development Council to improve local car production so average Nigerians can afford them,” Adedoyin said, while expressing concern that higher import duties will further reduce vehicle accessibility.
