Soaring prices of imported vehicles are pushing Nigerian car buyers towards locally-used alternatives. The devaluation of the naira has significantly increased the cost of importing cars, making them unaffordable for many Nigerians.
The naira’s depreciation has tripled the cost of imported cars since 2015. For instance, a used 2005 Toyota Corolla that cost N1.9 million on an e-commerce platform back then now goes for a staggering N6.5 million. While locally-used cars have also seen price increases, they remain significantly cheaper than imported options. A Nigerian-used 2005 Toyota Corolla, previously priced at N1.2 million, now sells between N3 million and N3.5 million.
Car dealers are adapting to the new market reality. Many, like Adedayo Oyewole, have shifted their focus entirely to selling locally-used vehicles due to the sluggish demand for imported cars. The high cost of clearing imported vehicles at ports, coupled with a volatile exchange rate and new policies like the VIN valuation system, has further discouraged investment in imported cars.
Source: Business Day