The Nigerian used car market is experiencing an unexpected boom as soaring living costs, a weak naira, and steep import tariffs push foreign-used cars far beyond the reach of many buyers.

Once considered a less-preferred option, locally pre-owned vehicles are now the go-to choice for car buyers seeking affordability in a difficult economy. More private owners are also putting their vehicles up for sale, flooding online marketplaces, social media, and roadside lots with Nigerian-used options.

Foreign-Used Cars Now a Luxury
Dealers say prices of imported vehicles, popularly called Tokunbo, have doubled or even tripled in the last year. A foreign-used Toyota (2003–2006) that once sold for ₦1.5m now goes for between ₦8m and ₦10m. The Honda CR-V (2010) has jumped from ₦5m to ₦13m, the Lexus RX330 from ₦5m to ₦15m, and the Toyota Venza from ₦6m to nearly ₦20m.

According to Lagos-based dealer Nurudeen Amodu, the sharp depreciation of the naira has flipped the market dynamics. “In the past, Nigerian dealers travelled to Cotonou to buy cars. Now, buyers from Cotonou and other neighbouring countries are coming here because their currency is stronger,” he explained.

Cross-Border Buyers Flood the Market
The trend isn’t limited to the Benin Republic. Dealers in Sokoto report a surge in buyers from the Niger Republic who see Nigerian-used cars as a bargain compared to what’s available back home. Haruna Abubakar, a Sokoto dealer, said foreign customers now outnumber local buyers in his lot.

Customs Levy Adds to the Squeeze
The Nigerian Customs Service recently replaced its long-standing one per cent Comprehensive Import Supervision Scheme (CISS) fee with a four per cent Free On Board (FOB) levy. The change, aimed at funding modernisation and new technology such as the B’Odogwu cargo clearance system, has further increased import costs.

For many Nigerians, these factors mean the dream of owning a foreign-used car is slipping away, but for the Nigerian-used car market, business has never been better.