- 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.
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.
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 Model||Year||2021 Price Range (in Naira)||Current Price Range (in Naira)|
|Toyota Corolla||2005||N1.9 million||N4 million|
|Honda Accord||2004||N1.6 million||N3.2 million|
|Honda Accord||2008||N2 million||N3.2 million - N3.9 million|
|Toyota Camry||2004||N1.7 million||N3.5 million upwards|
|Volkswagen Golf car||2004||N400,000||N2.6 million|
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.