-2.1 C
New York City
Thursday, December 8, 2022
Home BUSINESS Nigeria Records 50% Decline in Used Car Importation

Nigeria Records 50% Decline in Used Car Importation

Importation of used car, popularly known as Tokunboh in Nigeria, has declined by 51%, according to the nation’s international trade data released recently by the National Bureau of Statistics (NBS).

To this end, the value of imported used vehicles into the country dropped from N346.29 billion in 2021 to N169.1 billion in the first half of 2022.

The trend, which also applies to the importation of motorcycles and cycles in the country, has been attributed to scarcity of FOREX and drop in the value of Naira, which has pushed up the prices of the imported used vehicles. In addition, car dealers also blame the development, partly on the increase in the fees associated with clearing the cars from the ports.

The naira, which started the year at an average of N565 against the US dollar, has fallen to as low as over N800 to a US dollar. And following the announcement of plans by the Central bank of Nigeria (CBN) to redesign N200, N500 and N1000 notes before the end of the year, analysts have speculated that Naira exchange rate might further drop to N1000 to a dollar from 2023.

Already, prices of used vehicles on sale in Nigeria have increased significantly. For instance, a Toyota Camry 2007 to 2009 model that was sold for an average of N3.3 million last year has increased to a minimum of N4.1 million.

Also, a Lexus ES 350 (2007 to 2013 model) now costs an average of N5.3 million. It was sold for an average of N3.5 million as of this time last year. In the same vein, the price of a Toyota Corolla increased from N2 million to over N3.5 million.

As a result, imported used vehicle sales, according to the used car dealers, have dropped drastically across the country,

©Copyright MOTORING WORLD INTERNATIONAL. All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contactinfo@motoringworldng.com

Most Popular

Volkswagen CEO to Present Software ‘Reality Check’ To Board

Volkswagen's (VOWG_p.DE) CEO will outline a new software and vehicle platform strategy to the carmaker's supervisory board on Dec. 15 as he tries to...

Toyota Set for 2023 Dakar Rally With Three-Car Team

TOYOTA GAZOO Racing is set to take on the 2023 Dakar Rally with a three-car team early in January. The defending champions, Nasser Al-Attiyah and...

New Fully Electric Volvo C40 Recharge Heads for South Africa

The new fully electric C40 Recharge is scheduled to join Southern Africa’s range of electrified vehicles in the first half of 2023. Offering many of...

Hyundai IONIQ 5 Wins Car of the Year Award

The 2022 Hyundai IONIQ 5 has earned Esquire’s Car of the Year this month, adding another coveted award to its growing trophy case. Every year, Esquire editors drive and...
%d bloggers like this: