Nigeria Spends N633bn on Car Imports in 6 Months as Used Vehicles Flood Market
- Nigeria’s car import bill rose to N633.21 billion in the first half of 2026, up about 140% from N263.46 billion recorded in the same period of 2025
- The United States accounted for N491.52 billion of a major used-vehicle category imported into Nigeria during the period
- The increase comes as the Federal Government cut vehicle import levies, reducing the duty on used cars from 15% to 5% from July 1, 2026
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria’s car import bill rose to N633.21 billion in the first half of 2026, representing a 31 per cent increase compared with the N484.61 billion recorded in the second half of 2025.
Data from the National Bureau of Statistics (NBS) foreign trade statistics showed that the country’s car imports also more than doubled when compared with the N263.46 billion recorded in the first half of 2025.
Source: UGC
Based on the figures, the N633.21 billion recorded between January and June 2026 represents an increase of about 140 per cent from the corresponding period of 2025, rather than the 104 per cent initially reported.
Nigeria’s car imports rise in 2026
Nigeria spent N284 billion on car imports in the first quarter of 2026, according to the NBS data.
The figure increased to N349.14 billion in the second quarter, representing a 23 per cent rise between the two quarters.
The first-half 2026 import bill was also N114.86 billion lower than the N748.07 billion spent on car imports throughout 2025.
The United States accounted for the largest share of a specific used-vehicle category recorded in the trade data.
The NBS report showed that Nigeria imported N491.52 billion worth of used vehicles with diesel or semi-diesel engines and cylinder capacities above 2,500cc from the US.
Canada followed with N18.2 billion, while the United Arab Emirates supplied N17 billion worth of vehicles. China accounted for N16.14 billion, while Belgium and Italy recorded N7 billion and N6.64 billion, respectively.
Used cars remain popular among Nigerians
The increase in vehicle imports comes amid concerns over the continued inflow of foreign used cars despite the presence of several vehicle assembly plants in Nigeria.
Used vehicles continue to account for a significant portion of the automobile market as many Nigerians face affordability challenges and may find new vehicles too expensive.
The renewed growth in imports could also be influenced by lower import levies on vehicles and increased demand ahead of the 2027 general elections, although the available data does not establish a direct link between the two factors.
The Federal Government reduced import levies on new and used vehicles under its 2026 Fiscal Policy Measures.
Source: UGC
The revised policy, which took effect on July 1, 2026, forms part of changes to the country's tariff and customs regime aimed at stimulating economic activity, supporting trade and reducing the cost burden on importers.
Under the new structure, the levy on new vehicles was reduced from 20% to 10%, while the levy on used vehicles was cut from 15% to 5%.
The lower tariffs could make vehicle imports more affordable for importers and, potentially, improve access to cars for Nigerian consumers.
Customs confirms FG's import duty slash
Earlier, Legit.ng reported that the federal government's recent decision to reduce import duties on both used and brand-new vehicles is a move set to ease the financial burden on Nigerians grappling with skyrocketing car prices.
As millions of struggling citizens await the tangible impact of this policy, questions loom over whether it will effectively deter importers from diverting cargo to neighbouring ports amid ongoing fiscal challenges.
Source: Legit.ng
