FX fears, rising demand fuel Nigeria’s vehicle import surge

Nigeria’s vehicle imports surged by 67 percent in the first quarter of 2026, driven by rising demand for used vehicles and foreign-exchange uncertainty, despite higher vehicle prices and economic pressures.

According to the Nigerian Ports Authority (NPA) Q1 2026 Operational Performance Review, the total number of vehicles handled rose to 58,870 units from 35,262 units recorded in the corresponding period of 2025.

Vincent Okeke, Co-founder and CEO at LegitCar Africa, attributed the sharp rise in vehicle traffic to operational improvements at the ports and growing shipping activities.

Citing excerpts from the NPA report, Okeke said the rise reflected growing confidence among shipping operators using Nigerian ports as regional trade gateways.

While the NPA noted that the development reflects a strategic shift toward larger and more efficient vessels, driven partly by the operational impact of the Lekki Deep Seaport and expanding trade demand, experts stated that a combination of increasing demand for used vehicles and importer reactions to foreign exchange uncertainties encouraged dealers and importers to bring in more vehicles.

“Expectations around possible government policy adjustments, import duties, or automotive regulations could have encouraged dealers to increase imports ahead of any future changes that may raise costs further,” Jesse Akpan, logistics expert, said.

In the first quarter of 2026, the naira traded at an average of N1,378.88/$ at the official market, according to Central Bank of Nigeria (CBN) data, with exchange rates closing at N1,386.55/$ in January, N1,363.39/$ in February, and N1,386.72/$ in March.

The relative stability in the foreign exchange market during the period provided importers and vehicle dealers with better clarity on pricing and import costs, contributing to the rise in vehicle traffic recorded at Nigerian ports.

Yunus Najeem, automotive consultant and e-mobility expert, noted that the rise is also driven by hedging against inflation and currency devaluation, noting that importers often bring in stock early to lock in prices before the naira drops further or customs duties increase.

Najeem added that the lack of a functional public transport system makes vehicle ownership a necessity, not a luxury, for many Nigerians, which also would have increased the number of vehicles brought in Q1 2026.

“When importers hear that the CBN might adjust its exchange rate at the ports, they rush to bring in as many cars as possible before the cost goes up. It’s essentially stockpiling ahead of bad news, not a sign that doing business has gotten easier,” he said.

Iyawe Seyi Akinyemi, general manager, corporate and strategic planning, NPA, linked the increase to improvements in documentation processes, shipping activities, and trucking operations around the ports, as well as better access to foreign exchange. According to him, these factors have made importation activities easier for operators.