Car Imports Jump 140% to ₦633bn: What It Means for Buyers

Nigerians are buying imported cars again — and fast. Fresh foreign trade data from the National Bureau of Statistics (NBS) shows the country’s car import bill climbed to ₦633.21 billion in the first half of 2026, roughly 140% higher than the ₦263.46 billion recorded in the same period of 2025. The surge lines up with the Federal Government’s cut in vehicle import levies from July 1, 2026, and with steady demand for tokunbo cars among buyers who simply cannot stretch to brand-new prices.

So what does this mean if you are planning to buy a car in Lagos, Abuja or Port Harcourt in the coming months? Below we unpack the numbers, explain the new levy structure, and look at whether tokunbo cars for sale will actually get cheaper — plus practical tips for timing your purchase.

The Numbers: What the NBS Data Shows

According to NBS foreign trade statistics, as reported by Legit.ng on September 22, 2026, Nigeria’s car imports broke down like this:

• Q1 2026: about ₦284 billion
• Q2 2026: about ₦349.14 billion — a 23% jump quarter-on-quarter
• H1 2026 total: ₦633.21 billion, up from ₦263.46 billion in H1 2025 and ₦484.61 billion in H2 2025
• Full-year 2025, for comparison: ₦748.07 billion — meaning the first six months of 2026 alone came within about ₦115 billion of last year’s entire bill

The United States dominates supply. The NBS figures show Nigeria imported about ₦491.52 billion worth of used vehicles in one category (diesel or semi-diesel engines above 2,500cc) from the US alone. Canada (₦18.2 billion), the United Arab Emirates (₦17 billion), China (₦16.14 billion), Belgium (₦7 billion) and Italy (₦6.64 billion) followed far behind.

A separate analysis of the same NBS release by The News Chronicle, using a broader “passenger vehicles” classification, put H1 2026 passenger vehicle imports even higher at ₦1.18 trillion, up 145.6% year-on-year. The two figures differ because they group vehicle tariff lines differently, but both point the same way: import volumes and values rose sharply in 2026.

Why the US dominates Nigeria’s tokunbo supply

The heavy US share is no surprise to anyone who has walked through a Lagos car lot. American-spec Toyota, Lexus, Honda and Ford models — many bought at US auctions and shipped through Cotonou or Lagos ports — have long been the backbone of the Nigerian tokunbo market. Parts for these models are widely available at markets like Ladipo, and mechanics across the country know them well, which keeps resale value strong.

The July 2026 Levy Cut Explained

Under the Federal Government’s 2026 Fiscal Policy Measures, which took effect on July 1, 2026, the levy on imported vehicles was reduced significantly:

• Brand-new vehicles: levy cut from 20% to 10%
• Used (tokunbo) vehicles: levy cut from 15% to 5%
• Electric vehicles and mass-transit buses: import duty exemptions, per the fiscal policy package

At the same time, the government introduced a Green Tax Surcharge, which customs brokers say eats into part of the saving — especially on larger engines, SUVs and luxury vehicles. For a full breakdown of every charge you pay at the port (import duty, surcharge, NAC levy, ECOWAS levy and VAT), see our guide on tokunbo car prices and clearing costs in Nigeria.

How much does the cut actually save you?

Industry operators quoted by Legit.ng in July estimated that the changes could cut clearing costs on an average passenger car by as much as 45%, saving importers over ₦700,000. Their example: clearing a Toyota Camry that previously cost about ₦4 million was expected to fall to roughly ₦3.2–3.3 million. Treat that as an industry estimate, not a fixed figure — your actual clearing bill depends on the vehicle’s year, customs valuation, the exchange rate on the day, terminal charges and your agent’s fees.

Will Tokunbo Car Prices Actually Drop?

This is the question every buyer is asking. The honest answer: some relief, but don’t expect a crash. Here’s why.

1. The exchange rate still rules. Cars are bought in dollars. Dealers noted in July that the naira was fluctuating between roughly ₦1,400 and ₦1,500 to the dollar. A swing of ₦100 per dollar on a $10,000 car moves the landing cost by ₦1 million — more than the levy saving on many vehicles.
2. Port and logistics costs haven’t changed. Terminal handling charges, shipping line fees, demurrage and delays were all flagged by freight forwarders as cost drivers the levy cut does not touch.
3. The Green Tax offsets part of the saving. For bigger engines in particular, the net reduction is modest.
4. Demand is rising. More imports reflect more buyers. Some analysts also point to increased demand ahead of the 2027 general elections, though the NBS data does not prove a direct link. When demand is strong, dealers have less reason to cut prices.
5. History is a warning. A Lagos dealer interviewed by Legit.ng recalled that a similar reduction under the previous administration was wiped out by currency depreciation.

The likely outcome: prices on popular tokunbo models may soften slightly or stop rising as fast, and there should be more stock on lots — which gives buyers more choice and better bargaining power. But the headline price of a 2015–2018 Camry or Corolla is unlikely to fall dramatically unless the naira strengthens too.

What About Locally Assembled and Brand-New Cars?

The import surge raises an uncomfortable question for Nigeria’s local assembly plants. Despite players like Innoson, which led Q1 2026 new-vehicle sales with a 44.1% market share according to Focus2move data, and fast-growing Chinese brands like GAC, used imports still dominate what Nigerians actually drive. The levy cut on brand-new vehicles (20% to 10%) narrows the gap slightly for new imports, but new cars remain out of reach for most households.

That is where vehicle financing comes in. At the Lagos Chamber of Commerce and Industry (LCCI) Automobile & Allied Services Group symposium on September 23, 2026, themed around whether vehicle financing can replace fuel subsidy as a mobility equaliser, Mikano Motors showcased the Changan UNI-S and highlighted financing through partners including UBA, Access Bank and Autochek. If you are weighing a new car on credit against a cash tokunbo purchase, our breakdown of car loan rates, deposits and terms in Nigeria will help. You may also want to read our explainer on the Nigeria First policy and made-in-Nigeria cars.

Tokunbo vs Brand-New vs Nigerian-Used: Quick Comparison

• Tokunbo (foreign-used): Benefits most from the 15% to 5% levy cut. Good value, strong resale, parts widely available. Risks: flood-damaged or accidented US auction cars, and duty/clearing costs tied to the exchange rate.
• Brand-new imported: Levy halved from 20% to 10%, and financing options are expanding. Warranty and dealer support are major pluses. Downside: highest upfront cost and fastest depreciation.
• Locally assembled new: Supported by government policy and often easier to finance. Model choice is narrower and resale values are less proven for some brands.
• Nigerian-used (“registered”): Cheapest entry point, no clearing to worry about. Condition varies widely — a proper mechanic inspection is non-negotiable.

Smart Moves for Buyers in Late 2026

• Get the full landing cost, not just the car price. If you’re importing, ask your clearing agent for an itemised quote under the post-July 1 tariff, including the Green Tax.
• Run a history check. With US imports dominating, request the VIN and check the vehicle’s auction and accident history before paying.
• Watch the naira. A stable or stronger exchange rate is what will really bring prices down. If you can wait, track FX trends before committing.
• Use the extra stock to negotiate. More cars on lots means more room to bargain. Compare at least three dealers.
• Budget for running costs. With petrol still expensive, fuel economy matters. See our list of the best fuel efficient cars in Nigeria before settling on a big-engine SUV.
• Don’t forget insurance and papers. Factor in car insurance, registration and number plates when calculating your total budget.

Key Takeaways

Nigeria’s car import bill hit ₦633.21 billion in H1 2026, about 140% higher than a year earlier, driven by used US imports and the July 1 levy cut (used cars 15% to 5%, new cars 20% to 10%). Clearing costs have fallen, but the exchange rate, port charges and the new Green Tax mean tokunbo car prices are unlikely to crash. Expect more choice and slightly better bargaining power rather than dramatic price drops.

FAQ

Is the import duty on cars in Nigeria lower now?
Yes. From July 1, 2026, the levy on used vehicles fell from 15% to 5% and on new vehicles from 20% to 10%, per the 2026 Fiscal Policy Measures. A new Green Tax Surcharge partly offsets the saving on some vehicles.

Are tokunbo cars cheaper after the levy cut?
Clearing costs are lower, but final prices depend heavily on the exchange rate and logistics costs. Dealers have warned against expecting large price drops.

Where do most of Nigeria’s imported cars come from?
The United States, by a wide margin, followed by Canada, the UAE and China, according to NBS data for H1 2026.

Are electric cars exempt from import duty?
Reports on the 2026 fiscal policy package say electric vehicles and mass-transit buses are exempted from import duty. Confirm the current position with the Nigeria Customs Service before importing.

Figures in this article are drawn from NBS foreign trade statistics as reported by Legit.ng and The News Chronicle, plus industry statements reported by Daily Trust. Vehicle prices, import duties and specs change frequently in Nigeria — always confirm current figures with the dealer or official source before buying.