Nigeria’s passenger vehicle import market staged a strong recovery in 2025, with the value of car imports rising above N1 trillion in the first nine months of the year, buoyed by improved stability in the foreign exchange market.
Foreign trade figures released by the National Bureau of Statistics (NBS) show that passenger motor car imports climbed to N1.01 trillion between January and September 2025, compared with N894.09 billion in the same period of 2024. This represents an increase of N113.15 billion, or 12.66 per cent year on year.
The data indicate that the rebound was largely driven by a sharp surge in the third quarter, following a sluggish performance in the first half of the year when importers were still constrained by lingering FX volatility and high costs.
In the first quarter of 2025, the value of passenger car imports declined to N224.58 billion from N238.73 billion in the corresponding period of 2024, reflecting a 5.9 per cent drop. The weakness persisted in the second quarter, with imports falling to N254.67 billion from N291.93 billion a year earlier, a contraction of about 12.8 per cent.
The trend shifted decisively in the third quarter. Between July and September, passenger motor car imports surged to N527.98 billion, up from N363.42 billion in the same period of 2024. The increase of N164.56 billion, or 45.3 per cent, erased earlier losses and drove the overall nine-month growth.
Country-by-country data show that the United States remained Nigeria’s dominant source of imported passenger vehicles. In the first quarter alone, imports of used diesel or semi-diesel vehicles with engine capacity above 2,500cc from the US were valued at N93.51 billion. This figure rose to N184.21 billion in the third quarter, underscoring the scale of the rebound.
In total, vehicles imported from the United States were valued at about N415.05 billion in the first nine months of 2025, accounting for 41.21 per cent of Nigeria’s passenger motor car imports during the period.
South Africa ranked a distant second, with imports valued at N47.27 billion, representing 4.69 per cent of the total. The United Arab Emirates also featured prominently, especially in the third quarter, with total imports of about N26.35 billion, or 2.62 per cent of the nine-month figure.
Analysts linked the recovery to improving conditions in the foreign exchange market. An economic and financial markets review by FCSL Research noted that the naira recorded a stable and relatively strong performance in the third quarter of 2025, appreciating by 3.2 per cent to N1,480.66 to the dollar. The stability was supported by improved dollar inflows, sustained interventions by the Central Bank of Nigeria (CBN), and a rise in external reserves to $42.23 billion.
According to the report, FX trading remained within a narrow N1,480–N1,540/$ band during the quarter, aided by robust oil receipts, the clearance of FX forwards, and renewed foreign portfolio inflows.
Market operators said the calmer FX environment has enabled 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 and slowing inflation have encouraged higher vehicle inflows compared with the uncertainty seen in 2023 and 2024.
Freight forwarders also pointed to changes in customs valuation as a contributing factor. The Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, Mr Abayomi Duyile, said the adoption of the 846 valuation method has reduced duties by factoring in depreciation, mileage and wear-and-tear, easing clearance costs for importers.
Looking ahead, analysts expect the naira to remain relatively stable into the fourth quarter, supported by steady oil earnings, portfolio inflows and policy coordination, although they caution that mild volatility could still emerge around import cycles or shifts 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 high inflation, rising taxes and limited access to credit. However, with FX conditions becoming more predictable, demand for imported vehicles appears to be regaining momentum.
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