Nigeria’s vehicle import market has experienced a dramatic rise in the first half of 2025, with imports nearly doubling compared to the same period last year. The surge, experts suggest, is largely attributed to a period of foreign exchange (forex) stability and strategic reforms by the Central Bank of Nigeria (CBN).
Data gathered from key terminals such as Ports & Terminal Multipurpose Limited (PTML) and Five Star Logistics Terminal, alongside insights from customs agents, indicate that imports of vehicles, both new and used (Tokunbo), surged by almost 100% in the first six months of 2025.
At PTML, the increase in vehicle shipments is particularly striking. A source, speaking on condition of anonymity, noted that while only 40 vessels visited the terminal in 2024, over 50 ships have docked in the first half of 2025, highlighting the growing demand. In the same period, the terminal saw a dramatic jump in vehicle imports – from 18,000 in 2024 to over 34,000 units in 2025. This represents a near 90% increase in imports.
The source attributes this significant rise to exchange rate stability, which has allowed importers to plan their operations with greater certainty. “The stability of the exchange rate has provided importers with the ability to forecast and plan their purchases. It’s a welcome change after the unpredictability of the market in previous years,” the source added.
At Five Star Logistics Terminal, the trend is similar. A terminal source confirmed that by mid-2025, imports had already surpassed the previous year’s total.
“In 2024, our imports totaled 32,000 units. By July this year, we had already exceeded 37,000 units,” the source explained. “If this trend continues, we expect to more than double last year’s figures by year-end.”
Importers, the source pointed out, have adapted to the stable dollar-naira exchange rate. “With the naira now more stable, importers are confident in making long-term plans,” the official explained, underscoring the importance of a predictable forex environment.
The surge in vehicle imports coincides with the Central Bank’s increased interventions to stabilize the forex market. The CBN injected $50 million into the market and bolstered foreign portfolio inflows through Open Market Operations, strengthening the naira. This intervention led to a 1.1% appreciation in the naira, which recently settled at N1,520 per dollar.
Analysts believe the increased liquidity in the forex market has reduced risks and given businesses more confidence to trade, facilitating long-term planning. For vehicle importers, this means the ability to forecast costs accurately and secure better financing terms.
Industry players, including freight forwarders and customs agents, have corroborated the surge in vehicle imports. Mr. Thomas Alor, the PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, confirmed that vehicle volumes had notably increased. “There is a clear rise in vehicle importation this year compared to last year,” Alor said, though he refrained from providing an exact percentage increase.
Mr. Abayomi Duyile, Chairman of the National Council of Managing Directors of Licensed Customs Agents in Apapa, noted that the downward revision of customs duties had significantly contributed to the growth. “The introduction of the 846 valuation method has led to lower duties, making vehicle clearance smoother and more affordable,” Duyile explained. This change, he said, has enabled importers to more easily bring in vehicles, which has further encouraged growth in the sector.
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While the surge in vehicle imports is a positive sign of growing confidence in Nigeria’s economy, industry stakeholders caution that the continuation of this growth depends on the government’s ability to sustain forex stability and implement further structural reforms. Global oil price fluctuations, Nigeria’s dependency on imports, and domestic inflation are all potential challenges to long-term sustainability.
Economists also emphasize the need for Nigeria to diversify its forex earnings beyond oil. The rise in vehicle imports shows that a stable forex environment has boosted business confidence, but to safeguard against future volatility, a more diversified economy is essential.
For now, the outlook remains optimistic. If current trends continue, 2025 could mark a record year for vehicle imports in Nigeria, with an expected year-on-year increase of 100%. As one freight forwarder aptly put it, “When businesses can predict tomorrow, they can plan today.”
This newfound confidence in the forex market, combined with changes in customs policies, has sparked a boom in the automotive import sector, turning a previously volatile market into one with substantial growth potential.
