Importation of foreign used cars into Nigeria has increased by 104 per cent in the first six months of 2026, Daily Trust reports.
Data from the foreign trade statistics by the National Bureau of Statistics (NBS) showed that the country imported a total of N633.21bn worth of cars during the year, a 104 per cent rise from the N263.46bn recorded during the same period of 2025.
When compared to the second half of 2025, the increase was 31 per cent as N484.61bn of the product was imported.
In total, Nigeria spent N748.07bn to import cars in 2025, which is N114.86bn more than what was spent in the first six months of 2026.
Analysis of the report showed that N284.0bn was spent to import cars in the first quarter of 2026 but increased to N349.14bn in the second quarter, a 23 percent increase.
A breakdown by country of import destination indicated that N491.52bn of the product labeled ‘Used Vehicles, with diesel or semi diesel engine, of cylinder capacity >2500cc’ was imported from the United States.
This is followed by N18.2bn imported from Canada, then N17bn imported from the United Arab Emirates, N16.14bn from China, N7bn from Belgium and N6.64bn from Italy.
This is coming amidst rising concerns over the dumping of used vehicles into Nigeria despite the existence of dozens of vehicle assemblers.
However, the used vehicles’ segment has largely dominated the automotive market amidst affordability constraints by Nigerians.
Trend of import in 6 years
It would be recalled that Nigerians imported fewer passenger motor cars in 2024 due to rising inflation and the continued naira depreciation that made foreign exchange more expensive, driving up the cost of vehicle imports.
Data from the NBS showed that the total value of passenger car imports fell by 14.3 per cent to N1.26tn in 2024 from N1.47tn recorded in 2023.
The decline followed a sharp surge in imports the previous year, when vehicle importation more than doubled compared to 2022.
However, the harsh economic realities of 2024 forced businesses and consumers to cut back on non-essential purchases, with imported cars among the most affected.
Nigeria’s passenger car imports have fluctuated significantly. In 2020, the country imported N546.79bn worth of vehicles, a figure that increased to N695.40bn in 2021.
However, by 2022, imports declined slightly to N655.69bn before soaring by 124.7 per cent to N1.47tn in 2023.
The drop to N1.26tn in 2024 marked a reversal of the previous year’s surge, which was further accentuated by the drop to N748.07bn in 2025.
One of the major factors responsible for the decline was the surge in inflation, which eroded consumers’ purchasing power and made high-value goods, such as vehicles, less affordable.
FG’s import duty reduction
Daily Trust reports that the renewed surge in importation might be due to the reduction in import duty for foreign used cars and the 2027 elections that have seen the distribution of cars for campaign purposes.
It would be recalled that the Federal Government reduced the import levy on both new and used vehicles as part of its 2026 Fiscal Policy Measures, a move aimed at lowering the cost of vehicle importation, easing the burden on importers and improving access to vehicles for consumers.
The new fiscal measures, which took effect on July 1 2026, form part of a broader review of Nigeria’s import tariff structure and customs regime designed to stimulate economic activity and support trade.
Under the revised policy, the import levy on new vehicles has been reduced from 20% to 10%, while the levy on used vehicles has been cut from 15% to 5% per cent.
According to the government, ‘Beginning 1st July 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 Fiscal Policy Measures to support environmental sustainability while also reducing the import levy on new vehicles from 20% to 10% and that of used vehicles from 15% to 5% to ease the cost of vehicle importation.’
Speaking after the reduction, the President of the National Association of Motor Dealers and Chief Executive Officer of Mitchel Automobile Limited, Prince Ajibola, described the reduction in levies as a positive development but said its benefits would depend largely on the size of the Green Tax.
‘We don’t know what the surcharge is going to be. If they reduce the levy on vehicles and then introduce another surcharge, we need to know how much it is before we can say there will be any considerable change,’ he said.
Ajibola noted that while reducing the levy on used vehicles from 15 per cent to five per cent represents a significant concession, the gains could be diminished if the Green Tax offsets the reduction.
‘If the surcharge is far less than what has been reduced, then it’s a plus. But if it is the same or even higher, then it has not really changed anything,’ he explained.
He added that import duties remain one of the biggest contributors to the high cost of vehicles in Nigeria, aside from foreign exchange challenges.
‘The development is a very good one. There’s no doubt about that. But to know exactly how it will affect prices, we need to know what the Green Tax is. If it is very little, then the reduction in levies will still be significant and consumers will feel the impact,’ Ajibola said.