In reflection of the country’s dwindling economy and harsher tariff regimes imposed by the government of President Bola Ahmed Tinubu, importation of used TOKUNBO vehicles has recorded a significant decline.
Diesel or semi-diesel engines of cylinder capacity 2500cc dropped by 65.8 percent year-on-year (YoY) to N354.8 billion in 2024 from N1.04 trillion in 2023.
However, the decline also reflects the effect of continuous increase in import duty, levies and taxes on that category of imports.
Breakdown of data from the National Bureau of Statistics, NBS, Foreign Trade in Goods Statistics for the review period showed that no bills were recorded on used vehicles imports in the first quarter of 2024 (Q1’24).
But second quarter (Q2’24) recorded N110.54 billion, and the value grew by 11.9 percent QoQ to N123.77 billion in Q3’24 before declining 2.6 percent QoQ to N120.49 billion in Q4’24.
Recall that in July last year the Ports and Terminal Multipurpose Limited blamed high import duty and taxes on used vehicles for the 60 per cent drop in vehicle importation it experienced in the first half of 2024, H1’24.
In February 2025, the Nigerian Custom Service (NCS) said it intends to grant waivers to vehicle owners to pay duties within a specific time frame to avoid sanctions.
Recently, the Federal Government announced a 90-day window to regularise import duties on specific categories of vehicles.
The National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, said the development was a proactive move to enhance compliance and streamline import processes.
“In a proactive move to enhance compliance and streamline import processes, the NCS, under the directive of the Honourable Minister of Finance and Coordinating Minister of the Economy, is pleased to announce a 90-day window for regularising import duties on specific categories of vehicles.
“Valuation and assessment of the vehicles would be carried out using the Vehicles Identification Number valuation method. Import duty and a 25 per cent penalty shall be paid in tandem with the import guidelines, procedures, and documentation requirements for used vehicles under the Destination Inspection Scheme in Nigeria (2013) and the NCS Act 2023. Also, duty payments must be made using the procedure code specifically created for this exercise.” Maiwada said.
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