Nigeria’s car import drops in 2024 on FX

Nigeria’s passenger car imports dipped in 2024 as volatile exchange and accelerating inflation cut importation.

Data from the foreign trade report showed that passenger car imports into the country dropped 14.2 percent to N1.26 trillion in 2024 from N1.47 trillion recorded in 2023.

The significant fall in Nigeria’s car imports was attributed to the volatile exchange rate fluctuations and accelerating inflation in the country.

BusinessDay report showed that the naira concluded 2024 with significant depreciation across foreign exchange (FX) markets, recording a 40.9 percent loss against the dollar in the official market despite notable growth in external reserves.

It stated that the sharp decline highlights the ongoing challenges in Nigeria’s currency market in 2024 despite efforts to stabilise the economy.

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Data from the Central Bank of Nigeria (CBN) also showed that the dollar was quoted at N1,535 on December 31, 2024, the last trading day of the year in the Nigerian Foreign Exchange Market (NFEM) showing a drop from N997 per dollar on December 31, 2023, in what was then known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Kelechi Achilike, a car dealer, told BusinessDay that in 2024, dollar rates skyrocketed badly and customs duty has quadrupled.

“Aside from the dollar rates, the customs duty has quadrupled. Like Toyota Corolla, we used to clear it with N450 thousand, N480 thousand. Now it is 3 million, and when you spend this kind of money, you have to put it on top of the car.

“And when somebody comes to buy a Toyota Corolla, I tell him 7 million, 8 million. He will just take off. I’m talking about a 2004 Toyota Corolla, not a new one,” Achilike said.

He said some people now prefer locally made Nigerian cars (brand new) because when they are juxtaposed with foreign-made cars, you find out that it’s much cheaper, while some still prefer buying from other countries because they believe locally made vehicles can’t be as strong as the ones imported.

He also said that he used to sell almost 10 cars in a week but now he sells two in a month.

“You know, now you don’t have a middle class anymore. You have either the poor or the rich. No middle class and all these small cars, the ones that middle-class people buy, they don’t buy anymore because they don’t have the money.

“The people that buy cars now are people in government, politicians, and Yahoo boys,” he said.