Car Imports Hit N1 Trillion in Nine Months on FX Stability

Nigeria’s importation of passenger vehicles surged in 2025, reaching N1.01 trillion in the first nine months, up from N894.09 billion in the same period of 2024, according to the National Bureau of Statistics (NBS). The 12.7% year-on-year increase signals a recovery after weak demand driven by currency volatility and rising landing costs.

Quarterly data showed slow growth in the first half of the year, with imports valued at N224.58 billion in Q1 and N254.67 billion in Q2, but a sharp rebound in Q3 to N527.98 billion offset earlier declines. The United States remained the top source, accounting for 41.2% of total passenger car imports, followed by South Africa and the UAE.

Analysts attributed the rebound to relative stability in the foreign exchange market, improved FX liquidity, and steady naira performance, which strengthened importers’ confidence. The naira appreciated to N1,480/$ in Q3 2025, aided by higher oil receipts, sustained CBN interventions, and increased external reserves.

Industry sources also credited regulatory changes, including the introduction of the 846 customs valuation method, which adjusted duties based on depreciation, mileage, and vehicle condition, easing costs for importers. Ports and terminal operators confirmed the growth, noting higher volumes of vehicles arriving at Nigerian ports compared to previous years.

Economists project continued stability in car imports as FX conditions remain predictable, inflation moderates, and fiscal and monetary policies support liquidity, signaling a positive outlook for Nigeria’s automotive trade in the coming months.

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