The Rise and fall of Imported Car prices in Nigeria and Customs Duties battle

It has been a long-standing practice for Nigeria and other African countries to import used cars, as most popular car manufacturers are based in Japan and Germany. Meanwhile, countries like the USA buy new cars and use them for a few years before selling them to African countries.

The most popular used car brands are then imported into these countries, which involves shipping and clearing the vehicle, adding to the cost of purchase.

Recently, the parameters for determining clearing costs have changed. There is now a 35% import duty charge on imported vehicles, plus an additional 35% levy, bringing the total clearing cost to 70% of the vehicle’s price. The government implemented this 48% increase in clearing charges to discourage importation and encourage local car manufacturing in Nigeria. Currently, prices are quoted in foreign currency, mainly in dollars.

Importers of most vehicles in Nigeria have adjusted the prices of imported used vehicles due to continued changes in FX rates by the Nigeria Customs Service and CBN. They have stated that they will continue to make changes as the customs keep adjusting FX rates. Nigeria Customs have adjusted foreign exchange rates about six times since February 2024 due to the frequent devaluation of the naira.

Why do vehicle prices change

There has been a significant increase in the prices of used vehicles in Nigeria. For instance, the 2006 Toyota Camry model, which was sold for N1.2 million in 2022, is now being quoted by some dealers at almost N4 million. Similarly, the 2014 Toyota Camry model, which was previously sold for N5 million in 2002, now sells for as much as N12.5 million.

Furthermore, the Toyota Sienna XLE 7 passenger vehicle, which was sold for N5 million in 2022, is now being sold for N9 million. The Nigeria Customs Service (NCS) has announced a reduction in forex for goods clearance once the naira is appreciated against the dollar.

According to the National Bureau of Statistics (NBS) report on foreign trade for 2023, the total value of Nigeria’s used vehicle imports has increased by 226.46%, rising from N325.05 billion in 2022 to N1,063 trillion in 2023. Additionally, the value of used vehicles imported into Nigeria in 2023 spiked by N736 billion compared to the previous year.

The spike in vehicle imports in 2023 was mainly due to the massive increase in the second quarter, which amounted to N733 billion, representing 69% of total imports for 2023. On the other hand, Nigeria’s used vehicle imports for Q1 2002 stood at N72.32 billion, which declined to N69.48 billion in the reviewed year.

How to Buy Cars from Overseas

It is common knowledge that almost all cars found on Nigerian roads are being shipped from abroad because there is only one manufacturing plant in the whole of Nigeria which is Innoson Motors and it’s safe to say that Nigerians don’t really patronise made-in-Nigeria items.

And the major places to buy these cars and import/ship them into the country are the USA, Canada, and Europe.

What to look for when buying a used car

Reliability: Google is your best friend when it comes to learning about your car’s reliability. Searching for recalls and consumer reviews is your best overview of the vehicle. The price of the vehicle will also give you some insight into its reliability, as lower-priced vehicles may be at the end of their lifespan.

Vehicle History Report: Using the car’s VIN, you can run a vehicle history report on our Nigeria Vehicle Identification Number Checker. The report should come back with any serious accident claims, including fire or flood. Some car lots may spin the odometer back to increase the selling price, and the vehicle history report can alert you of the real number. Some reports even show if maintenance was done on time and the locations where it was performed.

Durability: Find out whether or not any parts have been replaced, or if you have to replace any of them soon. If something needs to be replaced, it opens up space for negotiation.

Latest prices of some popular vehicles in Nigeria

LEXUS
Toks 2010 RX350 – #19.5m
Toks 2012 RX350 – #24m
Toks 2015 RX350 – #23m
Toks 2016 LX570 – #99.5m

TOYOTA
Toks 2011 Venza – #13.5m
Toks 2007 Corolla Sport – #6.5m
Toks 2009 Camry Sport – #8.5m
Toks 2018 Camry XLE – #29m
Toks 2013 Highlander – #16.5m
Toks 2016 Camry Sport – #12.5m
Toks 2010 Tacoma – #19m
Toks 2014 Avalon XLE – #15.5m
Toks 2015 Camry LE – #12m

MERCEDES BENZ
Toks 2010 Benz ML350 – #11.5m
Toks 2016 Benz GLE350 – #35m
Toks 2014 Benz GL450 – #35m
Toks 2012 Benz GLK350 – #15m
Toks 2017 GLE43 AMG – #85m
Toks 2010 GL450 – #17.5m

HONDA
Toks 2019 Accord Sport – #22m
Toks 2006 Honda Pilot – #6.3m

HYUNDAI
Toks 2017 Elantra – #12.5m
Toks 2014 Santa FE – #15m

FORD
Toks 2017 F-150 – #36m
Toks 2018 F-150 – #45m
Toks 2020 F-150 – #35m
Toks 2011 Edge – #9m

REGISTERED
Reg. 2010 Mercedes Benz S550 – #11m
Reg. 2008 Nissan Titan – #5.5m
Reg. 2013 Hyundai Sonata – #6.5m