Weak naira exchange to dollar and high tariffs in the seaport has further pushed cost of used vehicle imports from United States to N1.05 trillion ($675.48 million) in one year. Also, imports of vehicles to the country was $22.3 million in January 2025.

The United States exported 83 per cent of the total imports in 2024 as National Bureau of Statistics (NBS) put the total amount spent on importation at N1.26 trillion last year. Findings from United States Customs and Border Protection (CBP) revealed that motor cars and vehicles for transporting persons was 80 per cent or $537.50 million of the imports from United States, while parts and accessories of the motor vehicles was 18.15 per cent or $122.62 million in 2024.

Also, motor vehicles for transport of goods was 0.87 per cent or $5.92 million; tractors, 0.60 per cent or $4.08 million; trailers and semi-trailers and other vehicles not mechanically propelled, 0.33 per cent or $2.24 million; special purpose motor vehicles not specified elsewhere, 0.32 per cent or $2.17 million and works trucks, selfpropelled tractors of railway station platform type, 0.22 per cent or $1.55 million.

As foreign exchange crisis is driving up the cost of imports, shipments of used vehicles have dropped to 4,818 units in the first three months of 2025. However, data by Nigerian Ports Authority (NPA) also revealed that about 2,250 units of used vehicles were ferried to the port in March 2025.

The data explained that at the Port and Terminal Multiservices Limited (PTML) in Tincan Island, Great Abidjan discharged 500 units; Great Lagos, 500 units; Repubblica del Brasile, 350 units; Grande Lagos, 500 units and Grande Cotonou, 400 units. Also, in February 2025 PTML, two vessels called to offload 1,000 units as Great Antwerp ferried in 500 units and Great Casablanca, 500 units as 1,560 units were offloaded at PTML and Five Stars in January.

The data noted that Sunrise Ace brought 460 units, while Glovis Spirit brought 350 units to Five Stars Logistics. Also, at PTML, Repubblica Del Brasile discharged 350 units, while Grande Argentina and Grande Cotonou offloaded 400 units each.

It learnt that decline in the volume of used vehicles importation into Nigeria was attributed to high import duty and taxes for used vehicles, imposition of import levy on used vehicles, restriction of rebate on ex-factory prices used for assessment of import duty to 10 years whereas the law allows importation of 12-year old vehicles.

Presently, vehicle importers are paying one per cent Comprehensive Import Supervision Scheme (CISS) fee, 15 per cent National Automotive Council (NAC) levy on used vehicles, Nigerian Automotive Industry Development Plan (NAIDP) 35 per cent levy on automobile imports, 35 per cent tariff, making a total duty of 70 per cent.

Recall that the General Manager of PTML, Mr Tunde Keshinro had explained that vehicles above 10 years of age were forced to pay higher import duties and high exchange rates, leading to high landing costs above the affordable level for the majority of Nigerians, who depend on private vehicles for private and commercial transportation.

Also, a former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, stressed the need for the abolition of the one per cent CISS charge, noting that it had become redundant since the government had introduced other fees to cover destination inspection costs. He entertained the fear whether the government was deliberately trying to discourage Nigerians from importing used vehicles.

According to him, removing the NAC levy and replacing it with the new customs charge would ease the financial burden on importers while still generating revenue for the government. In 2024, few passenger cars were shipped to the ports as due to the inflation and naira depreciation as naira was trading at N1,660/ dollar, while official exchange rate stood at N1,535/dollar.

The latest data from the foreign trade report of the National Bureau of Statistics showed that the total value of passenger car imports fell by 14.3 per cent to N1.26 trillion in 2024 from N1.47 trillion recorded in 2023, just as import was N655.69 billion in 2022; N695.40 billion in 2021 and N546.79 billion in 2020.