Nigeria’s importation of passenger motor vehicles rebounded sharply in 2025, with the value of imports rising to N1.01tn in the first nine months of the year, up from N894.09bn in the same period of 2024, according to foreign trade data from the National Bureau of Statistics, reported by PUNCH.
The N113.15bn increase represents a 12.66 per cent year-on-year growth and marks a turnaround from months of weak demand caused by exchange rate volatility and rising landing costs. The recovery, however, was driven largely by a strong rebound in the third quarter after a sluggish first half.
In the first quarter of 2025, passenger car imports were valued at N224.58bn, down from N238.73bn a year earlier, reflecting a decline of N14.15bn or about 5.9 per cent.
The second quarter also recorded a contraction, with imports falling to N254.67bn from N291.93bn in the corresponding period of 2024, a drop of N37.26bn or roughly 12.8 per cent, as importers remained cautious despite gradual improvements in FX liquidity.
The trend reversed sharply in the third quarter, when imports surged to N527.98bn between July and September 2025, compared with N363.42bn in the same period of the previous year.
The N164.56bn increase, or about 45.3 per cent, more than offset earlier declines and pushed the nine-month total higher.
Country-level data showed that the United States dominated vehicle supply. In the first quarter, imports of used diesel or semi-diesel vehicles above 2,500cc from the US were valued at N93.51bn, making it Nigeria’s largest source of passenger cars.
South Africa followed with N25.84bn worth of vehicles for goods transport, while Angola and Liberia recorded marginal volumes. In the second quarter, US imports remained strong at N99.18bn, with South Africa contributing N21.43bn, while Liberia and Equatorial Guinea accounted for smaller amounts.
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The rebound intensified in the third quarter, when used diesel vehicles above 2,500cc imported from the US alone were valued at N184.21bn, nearly double the first-quarter level.
Additional imports included N38.15bn worth of used vehicles with engine capacity between 1,500cc and 2,500cc from the US, while the United Arab Emirates emerged as a key source with N13.67bn in vehicle imports and N12.68bn worth of petrol-engine vehicles imported in completely knocked down form.
Overall, vehicles traced to the US were valued at about N415.05bn in the first nine months of 2025, accounting for 41.21 per cent of Nigeria’s total passenger motor car imports. South Africa followed distantly with N47.27bn, or 4.69 per cent, while the UAE accounted for N26.35bn, representing 2.62 per cent of the total.
Although imports in the first half of 2025 were N51.41bn lower than in the same period of 2024, the third-quarter surge alone exceeded its 2024 equivalent by N164.56bn, explaining why the nine-month figure closed higher by more than N113bn.
Analysts attributed the rebound to improved confidence as exchange rate volatility eased and access to foreign exchange improved, even though vehicle prices remain elevated.
According to an economic and financial markets review by FCSL Research, the naira strengthened in the third quarter of 2025, appreciating by 3.2 per cent to N1,480.66 per dollar, supported by improved dollar inflows, sustained Central Bank of Nigeria interventions, and a $2.87bn increase in external reserves to $42.23bn.
“Naira maintained a strong and stable performance in Q3 2025, appreciating by 3.2 per cent to N1,480.66/$ as improved dollar inflows, consistent CBN interventions, and a $2.87bn rise in external reserves to $42.23bn anchored market confidence,” FCSL Research stated, noting that FX trading remained within a narrow N1,480–N1,540 band during the quarter.
Looking ahead, the firm said the naira’s stability is expected to extend into the fourth quarter, although mild volatility could arise from import cycles or oil price swings. “The naira’s stability is expected to hold into Q4, supported by sustained portfolio inflows, steady oil earnings, and coordinated monetary-fiscal policy execution. However, mild volatility may surface around import cycles or global oil price swings,” the report said.
CardinalStone Research also projected that the naira would close the year within the N1,400/$–N1,450/$ range, citing moderating inflation, a sustained current account surplus, and rising FX reserves. “The ongoing disinflationary trends bode well for currency valuation… We project FX to close the year within the range of N1,400.00/$ – N1,450.00/$,” the firm said.
Industry operators confirmed the recovery in vehicle imports. An official at Ports & Terminal Multipurpose Limited said exchange rate predictability had enabled better planning by importers.
“Unlike before, the exchange rate is now more predictable. Importers can plan ahead, inflation is slowing, and businesses are finding room to expand,” the source said.
The PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, Thomas Alor, said vehicle volumes had “significantly grown,” while Apapa customs agents’ chairman, Abayomi Duyile, linked part of the increase to reduced duties following the adoption of the 846 valuation method, which factors in depreciation, mileage, and wear-and-tear.
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Image Credit: Foshan Guangcai International Trade Co., Ltd
