Prices of Tokunbo-Used Cars in Nigeria Increases By 100% Over Duty Hike, Car Sales Declines by Over 70%

The price of fuel in Nigeria is not the only thing that has increased by 100%. The price of Tokunbo cars has also increased by 100% in the Nigerian car market. That’s to say; if a 2002 Toyota Corolla cost N2 million before, the price has doubled in the market today.

The increase in the price of Tokunbo cars is followed by the hike in tariff by the Nigerian Customs Service in 2022. According to reports, cars like the Toyota Corolla, Camry, and Honda Accord are now over N1 million higher than their old prices before the customs duty for importing used cars in Nigeria was increased.

Speaking to a car dealer in Lagos, the dealer shared with Punch that a 2005 model of the Toyota Corolla that sold for N1.9 million in 2021 is currently being sold at N4 million. The dealer also noted that a 2004 Honda Accord of N1.4 million or N1.6 million is now being sold for N2.9 million. Whereas a 2004 Toyota Camry of N1.7 million as of 2021 is currently at N3.5 million.

The car dealer blamed the high exchange rate and increase in the cost of clearing imported used vehicles for the 100% increase in the cost of used cars in the country.

Touching on the issue, the Secretary General of the Lagos State Motor Dealers Association of Nigeria, Mr. Tai Olaniran, has urged the new administration to address the issue with the exchange rate. He narrated that car sales in Nigeria dropped over 60% in 2022.

The Chairman added: “The prices have gone up by like 50 percent. Of course, it has affected the number of cars we sell in a day. Currently, I did not even go to the office, and the reason is that there is nobody buying cars again.”