Nigeria’s appetite for imported passenger vehicles reached a new high in the third quarter of 2025, with total imports valued at ₦527 billion, according to the latest foreign trade data released by the National Bureau of Statistics (NBS). The figure represents more than a 100% increase compared with the ₦254 billion recorded in the same quarter of 2024, underscoring the growing cost of vehicle imports amid a weaker naira and ongoing adjustments to the country’s exchange-rate regime.
The strong third-quarter performance pushed Nigeria’s cumulative passenger car imports to approximately ₦1 trillion in the first nine months of 2025, meaning Q3 alone accounted for more than half of the year-to-date total. This development reflects how Nigeria’s trade structure continues to evolve in the aftermath of exchange-rate liberalisation, with the local currency’s depreciation significantly inflating the naira value of imported goods.
Data from the NBS show that the surge in passenger car imports occurred despite persistent inflationary pressures and declining household purchasing power. Rather than slowing demand, higher costs appear to have coincided with increased import values, highlighting the structural dependence of the Nigerian economy on foreign-sourced vehicles. The United States, Dubai, and South Africa remained Nigeria’s dominant import hubs, reinforcing the country’s reliance on established global vehicle markets.
A closer look at the data reveals that used vehicles accounted for a substantial portion of imports during the quarter. The total value of used passenger vehicles imported in Q3 2025 stood at ₦234.7 billion, with about ₦184 billion worth of those vehicles originating from the United States alone. This trend suggests that Nigerian buyers continue to favour used cars as a relatively more affordable option, even as foreign exchange costs push overall prices higher.
Between January and September 2025, passenger vehicle imports reached ₦1 trillion, up from ₦894 billion over the same period in 2024. In dollar terms, this translates to roughly $689 million, based on an average exchange rate of ₦1,450 to the dollar. While this represents a year-on-year increase, it is worth noting that total passenger car imports in 2024 stood at ₦1.2 trillion, down from the ₦1.4 trillion peak recorded in 2023.
That 2023 record coincided with the immediate aftermath of Nigeria’s exchange-rate unification policy, introduced shortly after President Bola Tinubu assumed office. The sharp depreciation of the naira that followed led to a rapid repricing of imports across multiple categories, including motor vehicles. As a result, even when import volumes moderated, the naira value of imports surged, creating record trade figures.
Quarterly trends in 2025 suggest a renewed acceleration. Passenger car imports rose steadily from ₦254.6 billion in Q1 to ₦224.5 billion in Q2, before jumping sharply to ₦527 billion in Q3. The third-quarter figure marks the highest passenger vehicle import value for that period since at least 2020, pointing to the resilience of import demand despite elevated foreign exchange costs. Historically, the single largest quarterly import bill for passenger vehicles was recorded in Q2 2023, when imports spiked to ₦809.6 billion, reflecting the immediate impact of currency realignment.
Analysts note that the latest increase is driven more by exchange-rate pass-through effects than by a dramatic rise in the number of vehicles imported. With the naira remaining relatively weak, the local currency cost of cars — even when sourced in similar volumes — has risen sharply. This dynamic continues to expose Nigeria’s automotive market to currency volatility.
Despite government policies aimed at encouraging local vehicle assembly and reducing import dependence, Nigeria still imports the vast majority of its passenger cars. This leaves the sector highly sensitive to movements in the foreign exchange market. The sustained rise in import values into 2025 suggests that demand for vehicles — whether for private use, commercial transport, or ride-hailing services — remains robust, even as affordability challenges mount.
Overall, the record ₦527 billion passenger car import bill in Q3 2025 highlights the complex interplay between consumer demand, structural import dependence, and exchange-rate dynamics. As long as domestic production remains limited, vehicle imports are likely to continue exerting pressure on Nigeria’s trade balance and foreign exchange reserves, especially in periods of currency weakness.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
