Car prices in Nigeria have increased due to the constant devaluation of the naira and increased exchange rates by Customs for clearing imports. With this naira devaluation, CBN severally Hikes the Import Duty Rate To N1,493.23/$1.
The parallel section of the foreign exchange market recorded a new all-time low on Monday after the naira depreciated to N1,730 per dollar.
According to data from FMDQ Securities, a platform that oversees foreign exchange trading in Nigeria, the local currency hit an intra-day trading high of N1,631 and a low of N1,000.
Prices of brand-new and foreign used cars, popularly known as Tokunbo, reached a record high in the last four years due to the continuous depreciation of the naira against the dollar.
This has increasingly made purchasing brand-new cars unaffordable and expensive to many Nigerians, especially low-income earners.
The naira-dollar exchange rate has significantly impacted the prices of vehicles sold in Nigeria because most of them are imported, and dealers need foreign exchange to bring them into the country.
