Nigeria’s importation of used vehicles saw a sharp decline of 65.8% year-on-year (YoY) in 2024, dropping from N1.04 trillion in 2023 to N354.8 billion, according to the latest data from the National Bureau of Statistics (NBS).
The decline is attributed to worsening economic conditions and the rising cost of import duties, levies, and taxes on used vehicle imports.
Breakdown of the Decline
According to the NBS Foreign Trade in Goods Statistics, no bills were recorded for used vehicle imports in the first quarter of 2024 (Q1’24). However, imports resumed in the second quarter (Q2’24) with a total value of N110.54 billion. This increased by 11.9% quarter-on-quarter (QoQ) to N123.77 billion in Q3’24 before slightly declining by 2.6% QoQ to N120.49 billion in Q4’24.
The Ports and Terminal Multipurpose Limited (PTML) had earlier warned in July 2024 that high import duties and levies were responsible for a 60% drop in used vehicle imports during the first half of the year.
Customs Intervention and Government Response
In response to the challenges, the Nigeria Customs Service (NCS) announced in February 2025 that it would grant waivers for vehicle owners to pay duties within a specified timeframe to avoid penalties.
Additionally, the Federal Government recently introduced a 90-day window to allow importers to regularise import duties on specific categories of vehicles.
The National Public Relations Officer of NCS, Abdullahi Maiwada, described the initiative as a proactive move to enhance compliance and streamline import processes.
“The NCS, under the directive of the Honourable Minister of Finance and Coordinating Minister of the Economy, is pleased to announce a 90-day window for regularising import duties on specific categories of vehicles,” Maiwada stated.
He explained that valuation and assessment would be conducted using the Vehicle Identification Number (VIN) valuation method, while importers would be required to pay the import duty plus a 25% penalty in accordance with the NCS Act 2023 and existing import guidelines.
Conclusion
While the Nigerian government seeks to improve revenue generation through stricter import regulations, the sharp decline in used vehicle imports signals growing concerns over affordability and economic strain on consumers. Industry stakeholders will be watching closely to see if the waiver policy helps revive the market or if further adjustments to import duties will be necessary.
