Nigeria’s spending on used vehiclears, fell significantly by 83% in the first half of 2024 compared to the same period in 2023.
According to the National Bureau of Statistics (NBS), Nigeria imported fewer used cars from countries like the United States, with no cars imported in the first quarter of 2024 and N138.62 billion worth imported in the second quarter.
This is a big drop from N819.15 billion in the same period last year.
The decrease in imports is largely due to the government’s new tax policies introduced in 2023. These taxes include a new Import Adjustment Tax (IAT) of 2-4% on vehicles with larger engines.
Vehicles with smaller engines, mass transit buses, electric vehicles, and locally made cars are exempt from this tax, making imported used cars more expensive.
Additionally, the government has banned the importation of used cars older than 12 years. In March 2024, the Nigeria Customs Service temporarily suspended a 25% penalty for vehicles that were improperly imported, giving some relief to buyers and importers.
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