Soaring living costs, high exchange rates, and increased import tariffs have pushed foreign-used vehicles, popularly known as Tokunbo, beyond the reach of many Nigerians as a result, the Nigerian-used car market is booming, with more private owners selling their cars and more buyers turning to affordable locally pre-owned vehicles.
Car dealers report a sharp rise in online and roadside listings, while prices for foreign-used cars have doubled or tripled due to the depreciating naira and a new four per cent Free On Board levy replacing the previous one per cent CISS charge.
The depreciation of the naira has also attracted foreign buyers from neighbouring countries like Niger, Benin, and Cameroon, whose stronger currencies make Nigerian-used cars cheaper for them. Dealers say demand from these countries now sometimes exceeds local patronage, with popular models like Toyota Corolla, Camry, and Sienna being purchased for export. Some buyers even retain Nigerian number plates for use abroad, boosting sales in border regions such as Sokoto.
Industry stakeholders, including the Association of Motor Dealers of Nigeria, are urging government support for locally assembled cars to reduce dependence on costly imports. They argue that affordable local production would stabilise prices, create jobs, and meet the needs of average Nigerians. However, they warn that the new tariff increases will further limit affordability, leading to more road accidents as people continue using unroadworthy vehicles.
The hardship has also forced many Nigerians to sell their cars to meet basic needs. Owners recount selling vehicles, sometimes for profit but often out of financial necessity, with some abandoning cars at ports due to high clearance costs. Customs agents and freight forwarders warn that the new levy will raise business costs, fuel inflation, and make vehicle ownership increasingly unattainable for the majority.
