"Toyota Corolla N4m": Price of Tokunbo Cars Rises by Over 100% in 2 Years as FG Introduces New Taxes

"Toyota Corolla N4m": Price of Tokunbo Cars Rises by Over 100% in 2 Years as FG Introduces New Taxes

  • Imported used car prices in Nigeria have surged by over 100% in the past two years
  • Models like Toyota Corolla and Honda Accord have seen significant price increases, exceeding previous levels by around N1 million
  • High exchange rates, increased clearing costs, and rising freight charges are contributing to the price surge, leading to a decline in used car purchases

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The prices of imported used cars have experienced a significant surge of over 100% over the past two years.

The Punch reports that the increase was due to a tariff hike by the Nigeria Customs Service in 2022.

Tokunbo cars
Cost of tokunbo cars rises over 100%. Photo credit: Guardian newspaper
Source: Facebook

Legit.ng reported that the Nigeria Customs Service introduced an automated valuation system for foreign cars known as Vehicle Identification Number (VIN) and adjusted the age limit of vehicles coming into the country from 2013 to 2014.

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The new tariff has also been partly blamed for the country's price hike of tokunbo vehicles.

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Also, foreign exchange volatility has had a major effect on how much importers spend to bring in Tokunbo cars.

According to a report, the Nigeria Customs Service has adjusted the age limit of vehicles coming into the country from 2013 to 2014.

The tariff hike also led to a drop in the volume of cars imported into Nigeria in the first quarter of 2023 to a total of 51,782 vehicles from 97,132 units imported in the same period of 2022.

Breakdown of changes in car prices

Car ModelYear 2021 Price Range (in Naira)Current Price Range (in Naira)
Toyota Corolla2005N1.9 millionN4 million
Honda Accord2004N1.6 millionN3.2 million
Honda Accord2008N2 millionN3.2 million - N3.9 million
Toyota Camry2004 N1.7 millionN3.5 million upwards
Volkswagen Golf car2004N400,000 N2.6 million

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Economists counter Buhari's claim that Nigeria's economy is better under him

Meanwhile, economists, industrialists and manufacturers have questioned President Buhari's claim that Nigeria's economy is better under him

Buhari had, in an interview granted to an international media firm, Bloomberg, spoken about the successes of his administration

The president also stated that he was leaving Nigeria’s economy better than he met it in 2015 when he assumed office.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.