Car Dealers From Cotonou, Niger Republic Buying Nigerian-used Cars Because Their Money Have More Value Than Naira

Car dealers from Cotonou and Niger Republic buying Nigerian-used car because their money have more value now than the Naira.

Also, high exchange rates and rising import tariffs pushing foreign-used vehicles out of reach for many Nigerian buyers.

High exchange rates and rising import tariffs are reportedly pushing foreign-used vehicles, popularly called Tokunbo, out of reach for many Nigerian car buyers with Nigerian-used cars now becoming the popular option due to their cheaper prices.

While Nigerian car dealers laments the rising costs and falling demand for imported vehicles, findings by Saturday PUNCH revealed a sharp increase in Nigerian-used vehicle listings by private owners on online marketplaces and roadside car lots.

Speaking with Saturday PUNCH, two Nigerian car dealers reveals that car dealers from neighboring Cotonou and Niger Republic now buys Nigerian-used cars because their money have more value now than the naira.

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One of them, Nurudeen Amodu, who deals with Nigerian and foreign used vehicles, says that the situation had reversed the old practice of Nigerian dealers travelling to Cotonou (in Republic of Benin) and other neighbouring countries to buy cars.

“Back then, what we usually did in the car business was to travel to Cotonou and other neighbouring countries to bring cars because our money was valuable, but currently they come to us to buy now because our money has lost value.

“Recently we hosted some customers from Cotonou that came to buy cars, and I asked them why, they said because their money has more value now than the naira and that they would make more buying Nigerian used cars,” Amodu said.

Several car dealers in Sokoto also told Saturday PUNCH that many car dealers from neighbouring Niger Republic now find Nigerian-used vehicles more affordable for Nigerien buyers due to the relative strength of the Nigerien currency against the Nigerian naira.

Source Credit : Punch

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