Vehicle imports surge past N1trn as FX stability fuels market recovery

Nigeria’s passenger vehicle import market recorded a strong rebound in 2025, with the value of car imports crossing N1 trillion in the first nine months of the year, driven largely by improved stability in the foreign exchange market.

Foreign trade data from the National Bureau of Statistics (NBS) show that passenger motor car imports rose to N1.01 trillion between January and September 2025, up from N894.09 billion recorded in the same period of 2024. The increase of N113.15 billion represents a year-on-year growth of 12.66 per cent.

The rebound, however, was uneven across the year. Imports remained weak in the first half as dealers continued to grapple with the effects of earlier currency volatility and high import costs. In the first quarter, passenger vehicle imports declined to N224.58 billion from N238.73 billion a year earlier, while the second quarter recorded a further drop to N254.67 billion from N291.93 billion in 2024.

Momentum shifted sharply in the third quarter. Between July and September 2025, imports surged to N527.98 billion, compared with N363.42 billion in the corresponding period of the previous year. The increase of N164.56 billion, or 45.3 per cent, more than compensated for the losses recorded in the first half.

Country-level data show that the United States remained Nigeria’s dominant source of passenger vehicles. Imports traced to the US were valued at about N415.05 billion in the first nine months of the year, accounting for 41.21 per cent of total passenger car imports.

South Africa followed at a distant second with N47.27 billion, representing 4.69 per cent, while the United Arab Emirates accounted for N26.35 billion, or 2.62 per cent, with its contribution concentrated mainly in the third quarter.

Analysts attributed the recovery to renewed confidence among importers as foreign exchange conditions improved. An economic and financial markets review by FCSL Research noted that the naira delivered one of its most stable performances in the third quarter of 2025, appreciating by 3.2 per cent to N1,480.66 to the dollar.

The report said improved dollar inflows, sustained interventions by the Central Bank of Nigeria (CBN) and a $2.87 billion rise in external reserves to $42.23 billion helped anchor market confidence, keeping FX trading within a narrow N1,480–N1,540/$ band during the quarter.

Market operators said the calmer FX environment has allowed importers to plan more effectively. An official at Ports & Terminal Multipurpose Limited (PTML), one of Nigeria’s busiest vehicle import terminals, said exchange rate predictability, easing inflation and better access to foreign exchange had encouraged higher vehicle inflows compared with the uncertainty that characterised 2023 and 2024.

Freight forwarders also cited reforms in customs valuation as a factor. The Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, Mr Abayomi Duyile, said the introduction of the 846 valuation method, which accounts for depreciation, mileage and wear-and-tear, has reduced duty burdens and eased vehicle clearance.

Looking ahead, analysts expect the naira to remain relatively stable into the final quarter of the year, supported by steady oil receipts, portfolio inflows and improved policy coordination, although they caution that mild volatility could still occur around import cycles or swings in global oil prices.

Despite the rebound, economists note that vehicle prices remain high and that the earlier slump in imports reflected broader structural challenges, including inflationary pressures, rising taxes and limited access to credit. Still, with FX conditions becoming more predictable, demand for imported vehicles appears to be gaining fresh momentum.