Market News

By Anozie Egole

Nigeria’s vehicle import market has recorded a dramatic surge in the first half of 2025, with imports doubling compared to the same period last year. This growth, industry stakeholders say, has been driven largely by recent foreign exchange stability and reforms by the Central Bank of Nigeria.

Exclusive data obtained from two of the country’s busiest car importing terminals – Ports & Terminal Multipurpose Limited and Five Star Logistics Terminal – as well as confirmations from customs agents, revealed that the number of vehicles shipped into Nigeria rose by nearly 100 per cent within the first six months of 2025.

An official at PTML disclosed that the facility witnessed a sharp increase in the number of vessels calling at the port. According to the source, who spoke in confidence due to a lack of authorisation to speak on the matter, “Over 40 vessels called at PTML in 2024, but in just half of 2025, we have already received more than 50 ships. This reflects the growing momentum in car importation.”

Providing further context, the source explained that in the first half of 2024, about 18,000 vehicles – including both new and fairly used (Tokunbo) cars – were imported through PTML. This year, however, over 34,000 units have already been brought in, representing an almost 90 per cent jump.

The source attributed this boom to exchange rate stability, which has enabled importers to plan more effectively. “Unlike before, the exchange rate is now more predictable. Importers can plan ahead, inflation is slowing, and businesses are finding room to expand. This has encouraged more vehicle importation compared to the uncertainty that plagued the market in 2023 and 2024,” the source said.

At Five Star Logistics Terminal, another major player in vehicle importation, the story is the same. A source at the terminal confirmed that imports have already exceeded last year’s total volume. “In 2024, throughput was around 32,000 units. But by July 2025, we had already crossed 37,000 units. If this trend continues, the year could end with more than double last year’s total imports,” the official revealed.

The official explained that importers have adjusted to the new dollar rate. “The stability of the naira-dollar rate has been key. When the exchange rate fluctuates, it disrupts trade. Now that the naira is more stable, importers are confident enough to make long-term importation plans,” the source added.

The spike in imports comes on the back of CBN’s recent interventions to improve liquidity in the forex market. The PUNCH reported earlier that the apex bank injected $50m into the market while also attracting higher foreign portfolio inflows through Open Market Operations.

These actions strengthened the naira, which recently appreciated by 1.1 per cent to close at N1,520 per dollar. Last Wednesday, the currency rallied further, settling at N1,500.91/$ at the official exchange market – the second consecutive day it traded below N1,500.

Analysts believe that this appreciation, coupled with increased forex supply, has given businesses more confidence to trade, reducing the risks associated with volatility. For vehicle importers, this has meant being able to forecast costs more accurately, secure better financing, and expand operations.

Agents confirm surge

Industry stakeholders have also validated the figures from the terminals. The PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, Mr Thomas Alor, confirmed the increase. “There is a clear rise in vehicle importation this year compared to last year. While I cannot give an exact percentage, the volume of vehicles arriving at the ports has significantly grown,” he said.

Similarly, the Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, Mr Abayomi Duyile, stated that the surge is noticeable. He attributed part of the growth to changes in customs duty assessment for vehicles.

“Last year, car clearance was slowed because duties were extremely high. The imputed values in the Customs system inflated costs. But with the introduction of the 846 valuation method, duties were reviewed downward. This has provided some relief for importers,” Duyile explained.

He further noted that customs now factor in depreciation, mileage, and wear-and-tear in valuing used vehicles, which has brought duties more in line with market realities. “A car valued at $5,000 last year would not be assessed at the same rate in 2025. This downward review has boosted clearance and encouraged more imports,” he said.

At the Tincan Island Port, the National Protocol Officer of the Association of Nigerian Licensed Customs Agents, Mr Riwane Amuni, also confirmed the development. “Vehicle imports are definitely higher this year. PTML and Five Star Logistics are the major roll-on/roll-off terminals, and the figures from both show the volume has risen considerably compared to 2024,” Amuni noted.

The sharp rise in imports suggests growing confidence among importers and traders in Nigeria’s economy, particularly in the automotive sector. The influx of vehicles is expected to expand consumer options, potentially ease supply bottlenecks, and stabilise prices in the car market.

However, stakeholders caution that sustaining this growth will depend on the government’s ability to maintain forex stability and implement deeper structural reforms. Rising global crude oil prices, Nigeria’s reliance on imports, and domestic inflationary pressures could all affect the sustainability of current trends.

Economists argue that while the forex reforms have boosted trade confidence, Nigeria must continue to diversify its sources of foreign exchange earnings, especially through non-oil exports, to safeguard the gains.

If the current trajectory continues, Nigeria could witness one of its strongest years for vehicle imports in recent history, with projections suggesting a possible 100 per cent year-on-year increase by December 2025.

For now, the story is one of renewed optimism. Importers, freight forwarders, and customs agents all agree that forex stability has been a game-changer, turning what was once a struggling sector into a booming market within a short period.

As one freight forwarder put it, “When businesses can predict tomorrow, they can plan today. That is why we are seeing this surge. The stability is giving us hope, and the numbers at the ports prove it.”