Nigeria, a country mostly regarded as the largest economy in Africa has been confirmed to have imported used vehicles and motorcycles to the tune of ₦1.28 trillion in just one year (Q3 2019 – Q2 2020).
A data from the foreign trade report, Nigeria recorded the sum of ₦1.28 trillion as of the value of imports for used vehicles and motorcycles between Q3 2019 and Q2 2020, compared to N899 billion recorded in the corresponding period (Q3 2018 – Q2 2019), implying an increase of 42%.
- Used vehicles imported into Nigeria was estimated at ₦799.5 billion, compared to ₦564.9 billion in the corresponding period.
- Motorcycles imported into Nigeria during the period was estimated at ₦477.1 billion. An equally 42% jump when compared to ₦335 billion in the corresponding period
- Most motorbikes imported are Completely Knocked Down (CKD). This means they are imported in other to be assembled by the end-user/reseller
Most of these used cars were imported from countries like the United States, Netherlands, Italy, Belgium, Germany and Canada.
Possible reasons for the rise
- Increase in the e-hailing car and bike services, such as Uber, Bolt, OgaTaxi, GidiCab and many other which of course is one of the two fastest-growing businesses in Nigeria.
- Rising urbanization
- Growing youth population
- The surging number of internet and smartphone users and increased investment.
Looking at the whole statistics, it only tells us one thing; the Nigerian economy remains an import-dependent economy and is largely driven by the importation of manufactured goods.
The increased demand for vehicles and motorcycle in the country is expected to indirectly attract investors and grow the automobile industry. Also, trillions are continually being spent year on year to meet the country’s vehicles demand deficit.
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Despite the attempt of the current administration to lure car manufacturers into the country, the industry is still underpinned by slow growth in the past decade.