New Prices: Nigerians Import N1trn Worth of Cars in Nine Months as Naira Rebounds in FX Markets
- The used car imports in Nigeria have rebounded following the relative naira stability in the last nine months
- According to new data released by the National Bureau of Statistics (NBS), Nigerians imported N1 trillion worth of cars in nine months
- The figure represents an increase of N113.15 billion, or 12.66%, compared with the N894.09 recorded in 2024
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s passenger vehicle import market staged a strong comeback in 2025, buoyed by improving stability in the foreign exchange market and renewed confidence among importers.
Fresh data from the National Bureau of Statistics (NBS) shows that Nigerians imported passenger motor cars worth N1.01 trillion in the first nine months of the year, marking a clear turnaround from the uncertainty that weighed on the sector in 2023 and 2024.
Source: Getty Images
The nine-month figure represents an increase of N113.15 billion, or 12.66%, compared with the N894.09 billion recorded in the same period of 2024.
The rebound shows how easing currency volatility and better access to dollars are reshaping trade decisions, even as vehicle prices remain elevated.
Weak start yields to sharp Q3 recovery
A closer look at the data reveals that the recovery was not evenly spread across the year. The first quarter of 2025 remained sluggish, with passenger car imports valued at N224.58 billion, down 5.9%from the same period in 2024.
Importers were still adjusting to the aftershocks of earlier exchange rate instability.
The second quarter offered little relief. Imports fell further to N254.67 billion, representing a 12.8% decline year on year.
Caution remained the dominant mood, despite gradual improvements in FX liquidity.
The tide turned decisively in the third quarter. Between July and September, car imports surged to N527.98 billion, a dramatic 45.3% jump from the same period in 2024.
This single-quarter rally more than offset the losses of the first half and drove the overall growth seen in the nine-month figures.
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US dominates as a key source market
Country-level data highlights the scale of the rebound. The United States emerged as Nigeria’s dominant source of passenger vehicles, particularly used diesel and semi-diesel cars with engine capacity above 2,500cc.
Imports from the US alone were valued at N415.05 billion over the nine months, accounting for over 41% of total passenger car imports.
South Africa trailed distantly with N47.27 billion, while the United Arab Emirates gained prominence in the third quarter, supplying vehicles worth about N26.35 billion.
Analysts note that the preference for US-sourced vehicles reflects both pricing dynamics and availability in that market.
Naira rebound anchors import growth
The resurgence in vehicle imports mirrors developments in the FX market.
According to FCSL Research, the naira delivered one of its most stable performances in recent years during the third quarter of 2025, appreciating by 3.2% to N1,480.66 per dollar.
Improved dollar inflows, sustained Central Bank interventions, and a $2.87 billion rise in external reserves helped anchor confidence.
FX trading remained within a narrow band throughout the quarter, creating a more predictable environment for import planning.
CardinalStone Research expects this stability to persist, projecting that the naira will close the year between N1,400 and N1,450 per dollar as inflation continues to moderate.
Ports confirm rising vehicle volumes
Industry operators say the data reflects real activity on the ground. Officials at major car-import terminals report a noticeable rise in vehicle volumes, attributing the trend to predictable exchange rates and recent adjustments to customs duty valuation.
According to a Punch report, freight forwarders also point to the revised 846 valuation method, which now factors in depreciation and mileage, as a key relief for importers.
Together, these factors suggest that while challenges remain, Nigeria’s auto import market is regaining momentum, powered by FX stability and cautious optimism about the broader economy.
New car prices emerge
Meanwhile, a prior report by Legit.ng disclosed that the naira depreciation pushed Nigerians into buying locally used cars.
As exchange rates fluctuate and inflation accelerates, the used car resale value is rising, making car ownership an asset.
Source: Getty Images
Nigeria’s heavy reliance on imported cars, exchange rate volatility, and inflation has caused a rise in demand for used vehicles.
Additionally, a new report showcased budget cars Nigerians can afford under N5 million as demand for imported cars slowed due to the high exchange rate.
Tokunbo cars sell for up to N5m
Legit.ng earlier reported that fairly used or second-hand cars imported from countries like the US, Canada, or parts of Europe are referred to as "tokunbo" in Nigeria.
Many believe that these vehicles are often in better condition than locally used ones and are typically less expensive than brand-new models.
Here are ten trustworthy Tokunbo vehicles that cost between N3 and N5 million, as highlighted by The Nation.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
